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Contracter verses employee

melbamelba 13 Posts
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We have an administrative assistant who is out on maternity leave (much sooner than we had anticipated)and we don't know when she'll be coming back. We've hired a person to fill in temporarily for an indefinite period. Do we treat her as an employee and pay for benefits or do we put her under contract? I would like to put her under contract, but am unsure because I don't think she meets the legal standards for a contractor. Thanks.
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  • 7 Comments sorted by Votes Date Added
  • ray aray a 5,703 Posts
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    In cases like this where I need someone for a specified time period, I hire a temporary replacement. They are a direct hire but with no benefits and are told their end date.
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  • HRCalicoHRCalico 582 Posts
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    We do the same as Ray. If, at the end of their time we decide to keep them on, they get a new "full-time benefits" date of hire and then have to satisfy the waiting periods as a new hire. Caution, though - in Nebraska, they can (and WILL) file for unemployment. Guess you Mississipians are lucky!
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  • Down_the_MiddleDown_the_Middle 771 Posts
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    Melba:
    Be mindful of the IRS' rules governing independent contractors, cuz the penalty and hassle for misclassifying this type of person-----simply ain't worth it !!! I seriously doubt that this "temp" person will have unilateral authority to do what he/she thinks is necessary and will not require any direction from the employer. If the employer maintains any form of CONTROL over what/how this person works, then go w/the employee route and save yourself some embarrassment & aggravation down the road.
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  • NaeNae55NaeNae55 3,243 Posts
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    We put our long term assignment temps on the payroll. Our policy, however, is that a temp must be here 6 months or longer to qualify for benefits. Regular employees do not have the 6 month wait period, only temps. We make sure each temp we hire understands the situation before they start.

    Good luck!

    Nae
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  • Peyton Irby MSPeyton Irby MS 139 Posts
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    The safer route is treat her as an employee, not as an independent contractor as mentioned in the other posts. You should make it clear (by memo or letter) to her that the employment is temporary and will end when the other employee returns. That saves the aggravation of her making any kind of claim except for unemployment. Even unemployment may be a shaky claim for her.
    Peyton Irby
    Editor, Mississippi Employment Law Letter
    Watkins Ludlam Winter & Stennis, P.A.
    (601) 949-4810
    [email]pirby@watkinsludlam.com[/email]
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  • NaeNae55NaeNae55 3,243 Posts
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    In our state employees who are hired on a temporary basis are allowed unemployment when the assignment ends. Of course, if they have not been with us more than 3 months it is not charged against us.


    Nae
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  • GolfGolf 41 Posts
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    In a case like this I would contact the temp service we use and ask them to payroll the person, then they are a temp. They will normally do this at a lower rate as you did the recruiting.

    Just had an audit today and this person would not qualify as an independent contracter.
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