Temporary employees meet short-term business needs in similar ways to contract workers. How you pay temporary employees differs in noticeable ways. Use W-2 forms if your business is the party responsible for paying temporary employees. Make sure you understand all the additional temporary employee prerequisites to properly classify and pay your workers.
Temporary Employees – You may hire some temporary workers as your employees, but others can be employees of a staffing agency. Temporary workers perform their duties either at-will or they work for you under a contract. Pay them hourly wages or, at times, a predetermined salary. They work seasonally, full time, or part time. Confirm whether you or a staffing firm must pay the workers. Verify timesheets, run payroll, file payroll taxes, and send W-2 forms if it is your duty.
Independent Contractors – These workers are their own business entity. Classify a worker as a sole proprietor or a limited liability company (LLC) when you report payments to them. Send a Form 1099-NEC to any contractor that you paid $600 or more for services in the previous year.
We manage the payroll process with our easy-to-use AMS Payroll software for those who need to learn how to pay temporary employees. Discover our “live” and after-the-fact payroll features by downloading our free demo or by calling (405) 340-0697 with any questions.