Working as a Contractor through a Staffing Agency

Sometimes it`s easy to spot a business-to-business relationship. If a licensed general contractor adds a wing to a corporate building, neither the company, nor the contractor, nor the IRS will confuse that contractor with an employee of the company. On the other hand, an independent consultant may give the impression that he is doing the same type of work as an employee of the same company. This exposes the company to the risk of an employment audit by a government agency and the risk of non-employee employees filing a lawsuit demanding benefits. The recruitment agency covers the costs related to the contract staff. This may include general liability insurance (FICA, FUTA, SUTA, workers` compensation and unemployment insurance). The hiring process can be incredibly long and tedious – and HR departments are often so busy with other tasks that it can be difficult to allocate enough resources for strategic hiring. For this reason, more and more employers are turning to recruitment agencies to help them find contract employees, as this eliminates many steps in the hiring process. The recruitment agency does all the tedious work to find and review a contract candidate. You want to use a recruitment agency. What else? 12 questions to ask yourself when choosing a recruitment agency. In determining whether a person has been wrongly classified as an independent contractor, courts and government agencies consider three factors: “Human resources companies are generally considered a registered employer with respect to temporary employees who are placed, that is.

[Clients of staffing firms] appreciate the fact that, for the most part, the staffing firm retains full responsibility for employees while they are on duty,” Leverant said. Great talent is becoming increasingly hard to find, and it will take an extremely long time for managers to review resumes and conduct interviews while being responsible for their day-to-day operations,” said Matthew Rowles, Director of Business Development at Kavaliro. “By contacting a trusted HR partner, you can save time and money. A recruiter can pre-screen and qualify candidates to ensure that the manager always interviews suitable candidates for the position. “The IT industry has the wonderful advantage of many opportunities for entrepreneurs and full-time employees. What one person considers a disadvantage could be considered by someone else as an advantage. A contract position fills the holes in a client`s workforce and is an increasingly popular part of workforce management plans for employers. As a rule, a contract worker works for a company and is employed by a recruitment agency. The employee works in your client`s business, but you or a third party are the registered employer. Are you ready to hire a recruitment agency? Find the right one and start a great professional relationship with the advice of our experts. Good recruiters want to help you find the best people for your business, and they won`t be able to do that if you don`t communicate clearly and thoroughly about your company, your position, and the type of person you want for the position.

In addition to discussing the basic responsibilities and skills required for the position, you will also provide all the company`s policies (dress code, hours, breaks, etc.) to give the hiring company representative an idea of your company`s culture and the type of professional who would succeed in it. As a niche recruitment agency, we strive to offer fast recruitment agencies. We do this while being aware of finding quality employees and reducing the risk of hiring. With our extensive talent vault, we have a growing pool of high-quality candidates ready to deploy in specialized roles. Being overstaffed and paying salaries and benefits for employees you don`t really need is a waste. At the same time, you don`t want to risk being understaffed and not being able to handle your current workload. Contract staff allows your company to avoid these two extremes by meeting your exact capacity, especially if it fluctuates due to seasonal or project-based requirements. As the world moves to the remote and on-demand economy, U.S. businesses are changing with it. Tech giants like Google, Facebook, Uber, and Amazon now employ thousands of contractors in technical departments to perform a variety of functions — from writing code to managing teams to testing products. In an employment contract, an employer and the independent contract staff agency agree on the terms of a specified period of employment before the candidate can be offered a full-time offer by the employer. The duration of a contract position may vary from a short-term position of one month to a permanent position, but more often than not, it extends from three to twelve months.

In almost any situation, the client has the opportunity to convert the contractor into a full-time position that meets their particular needs at that time. Using a recruitment agency isn`t the right choice for all businesses, but if you`re considering working with an agency to meet your hiring needs, here`s what you need to know about the process. The other common myth about recruiters is about the quality of their employees. Some companies may believe that employees who go through recruitment agencies are only there because they could not be hired anywhere else. This is not necessarily the case; In fact, temporary workers are often overqualified for the jobs they do, Brustein said. Key Finding: Companies can expect to spend 25-100% of the salaries of employees hired at a recruitment company, as well as other expenses. Recruitment agencies usually charge 25% to 100% of the hired employee`s salary. For example, if you and the hiring agency agree on a 50% markup and the new employee earns an hourly wage of $10, you will pay the agency $15 an hour for their work. A full-time employee, also known as a permanent employee, is a W-2 employee of a company (client of the agency). Although an agency can help with the search, this person is an employee of the client on the first day. Paychecks and benefits come directly from the company. Remuneration is usually paid in the form of a salary.

Typically, benefits such as paid vacation, sick leave, health insurance, and pension plans are reserved for direct employees. In the case of contract hires, they are only entitled to these benefits if they obtain a full-time position at the end of their contract. For this reason, some candidates may not be interested in a contract position to hire, which means that your recruitment agency may work with a slightly smaller pool of candidates than for a direct hiring position. The main difference between contract and full-time employment is the structure of the payroll. While direct recruitment of employees immediately makes the new employee an employee of the end-user company, a contract hire is on the recruitment agency`s payroll for the duration of their contract. If an offer of full-time employment is made at the end of the contract, the employee will be transferred to the client`s payroll at that time. An example of an entrepreneur could be a developer who is brought in by a company for a short period of time to complete a new website. After the completion, processing and acceptance of the website, the project may terminate the business relationship or extend to other related services. If you work on a limited budget, contract positions can provide you with a monetary benefit. A big advantage of contract positions to hire is that they can give companies the time they need to fit a new full-time employee into the budget while getting the job done.

Employees on contract to hire generally do not receive benefits and are not eligible for a health care plan or pension contributions until they become full-time employees at the end of the contract. In addition, contract employees are usually only paid for the specific hours they work, rather than receiving a fixed salary. In a blog post about Snagajob, author Amy White described the main types of jobs that recruiters help company staff: temporary (an assignment with a set start and end date), temporary to hire (an assignment initially temporary but used to help an employer determine the temporary worker`s long-term agreement with the company), and direct hiring (a permanent position, in which the recruitment agency acts as a recruiter). Contract workers are employees of W-2. Only the portion of FICA taxes for employees comes from a contractor`s salary. The contract employee is usually hired for a predetermined period of time to carry out a specific project. A recruitment agency takes care of the tax on the salaries of the contract employee. .