From the HR Support Center: Can we pay a temporary employee as an independent contractor?

From the HR Support Center: Can we pay a temporary employee as an independent contractor?

We’ve hired someone to help out with some end-of-year tasks, and they’ll be leaving shortly after the new year. Can we pay them as an independent contractor since the duration of their employment will be only a handful of days? We will be controlling the work.

Likely not. The IRS, the U.S. Department of Labor, and state agencies have specific criteria for determining who is an employee and who is an independent contractor. These criteria focus on the overall relationship workers have with their employer, with attention to who controls when, where, and how the job gets done, along with who has the opportunity for financial profit or loss. The timespan of employment is not one of those criteria.

We recommend you review the criteria in light of what the role will be, but based on what you’ve said, the person hired will probably be an employee. To learn more about the rules around independent contractors on the HR Support Center contact us at 866 757-8111.

The HR Support Center is a service offered to Payroll Partners clients, and provides access to exclusive, industry-leading HR tools and resources, for just a few dollars a month. From employee handbooks, job descriptions and other commonly used HR documents, to up-to-the-minute law alerts, easy-to-understand state and federal law libraries, and unique training videos, the HR Support Center will help you effectively manage your HR compliance and employee relations needs.

Original content by the © HR Support Center. All Rights Reserved. This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.

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