With uncertainty still a major business concern, many companies are tiptoeing back into the employment market by hiring temporary workers. According to the Bureau of Labor Statistics, the number of temporary employees — including independent contractors, on-call candidates, freelancers, and other temporary or part-time workers — exceeds two million people in the United States. The skills of such workers often extend far beyond traditional clerk and bookkeeping roles. For example, temporary employees might include chief financial officers, nurses, lawyers, accountants, information technology professionals, manufacturing technicians, and retail staff.
The advantages of hiring temporary staff can be significant. If a key marketing manager goes on maternity leave or your resident techie packs her bags, you may be able to find a temporary worker to fill the gap. Accepting an employee on a temporary basis allows you to evaluate that person's skills, performance, personality and general "fit" with your company before making a permanent offer of employment. In addition, recruiting/employment agencies often test an employee's skills, perform background checks, verify employment history, and handle payroll expenses, withholding taxes, unemployment insurance, and worker's compensation. In most cases, you won't provide a benefits package for temporary staff, so such employees may cost less over the short term. However, be aware that agencies often charge commissions in addition to hourly rates and may charge a separate fee if the temporary worker is hired permanently.
If you're considering the temporary employee option for your business, here are a few suggestions.
For assistance with this or any of your business concerns, contact our office.
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TAX ALERT: October 17, 2011 is the filing deadline for all individuals who filed an automatic 6-month extension for forms 1040, 1040Aor 1040EZ and Electing Large Parnerships that were given an additional 6-month extension.