Payroll Trends for 2020: Supporting Contract Workers

Payroll Trends for 2020: Supporting Contract Workers

For many people, the idea of contract work is very appealing. They appreciate the freedom, flexibility and personalized work space that the work provides. With contract work becoming more popular, that could be making a change in your recruitment business. You’ve been focusing on making full-time, direct placemnets.

However, there is opportunity to land more revenue for your recruitment business through placing contract workers. With those contract workers comes a lot of back-office tasks that your company might not be ready to take on. One of those tasks is with payroll. Let’s look at how your recruitment company can handle the payroll side of placing contract workers.

Full-Time vs. Contract

If your recruitment business has only been making direct hire placements, then payroll isn’t an issue for your team. However, if you are looking to expand, or even making split network placements, then payroll might become a new task for your company to conquer. If they are your employee, then you are responsible for their payroll.

Your recruitment business might have some full-time placements, some contract workers on 18-month projects and some temporary workers on 13-week assignments. All of those assignments require different onboarding systems and payroll structures. By outsourcing your payroll to a company, the processes and systems get created to handle that flawlessly. The last thing you want for your workers is for a payroll error and they don’t receive a check on Friday.

Employer of Record

Digging into new sides of the business, the employer of record status becomes a major task to challenge. Through the direct placement side, you aren’t responsible for having that employee in your company. But what if you are looking at a contract assignment for information technology, can you handle the back office tasks that comes with being the employer of record?

Recruiters could handle that easier if it’s in their state, but what if you get a lead on a placement in a different state? Are you certified to be an employer of record in a neighboring state or in a state that’s clear across the country?

Think Through the New Systems

The easiest and best choice for your recruitment business might be to ignore growing a new division of your business and focusing on building what’s working right now.  However, with the opportunity that’s coming for more remote and contract workers, the opportunity could be too much to ignore.

Creating and implementing the best practices for your recruitment business and for the employees will reduce frustration.

Get Help Supporting Contract Workers

Get help supporting your contact workers through USA Staffing Services. We can serve as the employer of record and handle all administrative tasks so you have more time to focus on your core activities. Contact us today!

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