Is Your Company Prepared to Hire Contract Workers?

Posted by Jeff Pelliccio on Dec 1, 2017 9:00:00 AM

In ICS insights

Hiring for business today is a dynamic and ever-changing task. For companies that are looking for innovative ways to meet their workforce needs, contract workers may be an excellent solution. Although getting contract workers in the door may be a smoother process than hiring by traditional means, there are still many preparations that need to be made. One of these essential precursors is having your payroll squared away. While it may seem simple at first glance, it is a lot easier to have an EOR service for contract employees. To get you started, we put together a list of items that need to be in place for your company to successfully work with a contract to hire, contract, or temp to perm worker.

  • Background Check or Drug Screen - If your company requires that employees be background checked or screened for drug use, it is vital that you prepare for this before onboarding contract workers.This may mean setting up an account with a local laboratory for drug screening or putting together an action plan for dealing with background checks. Just make sure you're ready to process these screens as soon as possible so you can get eligible candidates working quickly.

  • Employment Agreement - An employment agreement is a formal document that specifies the conditions of a relationship between an employee and employer. This agreement may include things such as compensation and employee expectations. You may want to review your current employment agreement and see if it will meet the needs of a potential contract employee. If there are issues that are not applicable to a contract employee or you need to add additional requirements, writing up a contact worker-specific document may be a good idea.

  • I9 Form - The I9 form is an employment eligibility document from the United States government. For you to be able to legally hire someone to work for you even in a contract position, you will need to have an I9 form on file. Make sure you check out the current version of the form and make sure all workers fill it out completely so you can file it with the government.

  • Federal, State, and Local Tax Forms - Make sure you have all applicable tax forms available for new hires to fill out. For someone working in a contract position, it is still necessary for payments to be documented appropriately for taxes. These tax forms will not only protect your company but make it possible for your contract workers to claim the time they put in on the job for their yearly income taxes.

  • Client Specific Forms - If your contract hires will be working with any of your clients, make sure you have all applicable documents available to make them eligible to work in this capacity. You may need to have documents written up stating how these workers will handle company issued or client-specific property. You want to make certain that contract workers are prepared to properly represent your firm in this manner, so having a contract to this effect may be a good option.

  • Direct Deposit Forms - if your company offers direct deposit to contract employees, make sure you have the form necessary to get these workers on to the next deposit. Talk to your banking representative to find out how to deal with the paperwork for temporary employees, if that winds up being the case. No matter what, it is important that this is handled as soon as possible after hiring so that the contract worker gets paid promptly.

Remember, information provided above is just a general guideline to some of the most common items needed for new contract hires, your specific needs may vary depending on corporate policies. By preparing ahead for potential new contract-to-hire workers, you will best be able to utilize their abilities in a time-sensitive manner. If you have any need for a company to handle your EOR services, reach out to us. We are always here to help you through all stages of the hiring process.

Request a Call

FTN Legal Compliance.png