Temp workers are often brought on board to help with the extra work around the holidays especially in retail and other seasonal businesses. They are a great way to fill a void in your staffing and increase resources for the peak season, without too much hiring or the added costs.
Even though temp or seasonal workers aren’t employees, there are things you must consider. From having the right contracts to treating your temporary workers right, you can avoid any issues post-holiday season by keeping these in mind.
Consider a Staffing Agency
For temporary help, you may want to consider working with a staffing agency rather than deal with hiring the temporary workers in-house. Temp agencies do charge a fee for using their services, but the cost saves you the hassle of paying taxes as well as save you time and money on interviewing, hiring, etc. Additionally, candidates also have been per-screened and selected for your company by an agency.
Temp Workers and Taxes
If you hire an independent contractor or temp worker to fill your void, do not treat them like employees in relation to taxes. Get their social security number or taxpayer identification number for tax purposes so that you can fill out a 1099-M at the end of the tax year, showing the wages paid. Read the IRS rules regarding temporary and independent contractors. Be sure to pay particular attention to what classifies a worker as an “employee” and ensure you abide by these rules.
Use Contracts
Your contract with the independent worker or temporary employee must be precise and use language that specifically identifies that worker as a “temporary” employee. Read the temp’s scope of work, outline a contract period (a defined start and end date), and clearly indicate that the position is not full-time or permanent.
Still Abide by Salary Requirements
Even though they are seasonal or temporary workers, you are required to follow all wage and overtime requirements. If the worker works more than forty hours per work week, you must pay them over time for the additional hours worked. Never force temporary workers to come in early, work late or work through their scheduled break times without pay.
Provide Temporary Workers with a Safe Work Environment
Your temp workers must have a safe working environment just as much as your permanent employees. You’re obligated, as the business owner, to manage all injuries, provide safe working conditions, and supply the temporary worker with any necessary on-the-job training to prevent an injury.
Consult with Your Attorney
It is best to consult with your attorney when drafting your temporary worker contracts. Your attorney can ensure your contract uses the right language to identify your temporary worker, outlines their duties, and more. If a dispute does arise, your attorney can represent your business against the temporary worker and their respective claims. Contact the Law Offices of Peter M. Feaman today for a no obligation consultation by calling 561-469-0019.