Debbie Fledderjohann's Blog Posts Tagged 'Contracting' (35)

What is an Employer of Record?

In a general sense, the Employer of Record is simply the entity that serves as the employer for tax purposes while the employee performs work for a different company.  The Employer of Record, often referred to as the W-2 Employer of Record because they are responsible for issuing W-2s to the employee, shoulders the responsibility for all the traditional employment tasks and liabilities.

When applied to a contract staffing situation, the Employer of…

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Added by Debbie Fledderjohann on December 28, 2012 at 9:28am — No Comments

6 Scary Risks of Running Your Own Contract Staffing Back-Office

Forget about ghosts and goblins. When it comes to running your own contract staffing back-office, there are very real risks that can keep any recruiter up at night.

Handling the back-office duties associated with contract placements becomes more complicated each year as employment regulations continue to increase. 

Here are just some of the scary details to fear:

  1. IRS audits — The IRS seems to be cracking down on…
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Added by Debbie Fledderjohann on October 23, 2012 at 3:57pm — No Comments

Can a "One-Man Show" Offer Both Direct and Contract Services?

When adding contract staffing services to your existing direct-hire recruiting business, you must first decide if you are going to handle the back-office tasks (payroll, benefits administration, employment paperwork, invoicing, etc.) in-house or if you are going to outsource them.

Many small firms or "one-man shows" choose the latter. After all, it can take the average recruiter one to six months to get set up to handle contract staffing issues in-house.  Not only…

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Added by Debbie Fledderjohann on June 25, 2012 at 8:51am — No Comments

How Can I Get Set Up to Make Contract Placements in Other States?

If you have contractors in your home state, it may not be a big deal for you to run your own back-office, particularly if you are already processing payroll and handling taxes, unemployment,  Workers' Compensation, benefits, etc. for your own staff.

But before you can take placements in other states, you're going to have to do a lot of legwork and homework. Every state has different laws and requirements you will have to follow for the contractors you have placed…

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Added by Debbie Fledderjohann on April 13, 2012 at 9:00am — No Comments

Is Your Certificate of Insurance (Or Lack Thereof) Holding You Back?

As the demand for contractors continues to increase, clients are getting more picky about the vendors they select to supply them with the help they need. One issue we are seeing companies scrutinize more closely is the Certificate of Insurance.  

A Certificate of Insurance is a document that proves that the vendor is insured to take on the liability associated with employing the contractors.  When you place contract candidates, most major clients will want to…

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Added by Debbie Fledderjohann on April 10, 2012 at 8:30am — No Comments

Top 5 Reasons Recruiters Don't Offer Contracting (But Should): Part 4

(This series focuses on the most common reasons we've heard for why recruiters don't want to offer contract staffing.  These reasons are based on common misconceptions about contract staffing and prevent recruiters from reaping the benefits of offering contractors to their clients.)

Reason #4: I don't have time to deal with the hassles of contract staffing

Many recruiters believe that having contractors is going to cost…

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Added by Debbie Fledderjohann on February 14, 2012 at 12:31pm — No Comments

Who is the Employer of Record in Contract Staffing Situations?

In a typical contract staffing situation, a company utilizes the services of a worker for a specific amount of time and outsources the employment of that worker to a third party. That third party is often referred to as the Employer of Record and serves as the W-2 employer for that worker.  As the Employer of Record, the third party takes on the legal liability and the responsibility for the following employment…

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Added by Debbie Fledderjohann on December 29, 2011 at 10:28am — 2 Comments

Top 10 Reasons To Use A Contract Staffing Back-Office

Contract staffing is a great way to supplement your direct-hire placements with a steady stream of income. But why should you give away part of that income to a contract staffing back-office? Well, there are a number of reasons, and just for fun, we'll count down the top 10 reasons for you, Letterman-style:

10. No more employee questions or issues

9. Stop worrying about missing payroll

8. Stop worrying about whether a client will pay to cover the payroll…

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Added by Debbie Fledderjohann on December 19, 2011 at 3:09pm — No Comments

Four Questions to Ask When Selecting Contract Staffing Back-Office

Using a contract staffing back-office is a great way to reap the benefits of placing contractors without the hassle and risk that comes with employing those contractors.  The question is, which contract staffing back-office should you entrust to be Employer of Record for your contractors?

Obviously, you want a back-office that has been in business for a long time and has a good reputation.  But beyond those basics, here are a few…

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Added by Debbie Fledderjohann on November 21, 2011 at 2:43pm — 2 Comments

3 Ways Contract Staffing Provides Workers Flexibility

It's no secret that the American workforce is changing.  More households have two working parents now than any other time in history. Both mothers AND fathers need time off to care for sick children or attend their school events.  And many of them are also taking care of their own elderly parents. Meanwhile, Millennials who grew up with cell phones and…

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Added by Debbie Fledderjohann on October 11, 2011 at 4:37pm — No Comments

How to Get Job Descriptions and What They Should Include

In our last blog post, we discussed why you should get job descriptions for all your job orders, especially your contracting job orders. But how do you get job descriptions and what should be in them?

Well, typically, the how is easy. Simply ask your client for a job description when…

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Added by Debbie Fledderjohann on September 23, 2011 at 2:50pm — 1 Comment

4 Reasons to Get a Job Description For Contract Staffing Job Orders

When a recruiter comes to us for a quote, one of the first things we ask them for is a job description for the position they are trying to fill.  But even if you don't have a back-office asking you for one, you should get a job description for all of your job orders, especially for contract placements.  

Job descriptions allow you…

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Added by Debbie Fledderjohann on September 23, 2011 at 2:47pm — No Comments

Side-Stepping the Co-Employment Trap 3: Benefits

Contracting offers employers the flexibility they need in this economy to easily adjust their workforce to their business needs. But some employers are gun-shy about utilizing contractors out of fear of co-employment issues. In this series, we will examine the co-employment risk and how your client companies can reduce that risk when utilizing contractors.

Contractor benefits, or more specifically, the lack thereof, was the driving force behind one of the most famous co-employment…

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Added by Debbie Fledderjohann on September 9, 2011 at 11:54am — No Comments

Side-Stepping the Co-Employment Trap 2: Compensation and Taxes

Paycheck Contracting offers employers the flexibility they need in this economy to easily adjust their workforce to their business needs. But some employers are gun-shy about utilizing contractors out of fear of co-employment issues. In this series, we will examine the co-employment risk and how your client companies can reduce that risk when utilizing contractors.

Perhaps one of the most important aspects of the employer/employee relationship is how the worker is paid for…

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Added by Debbie Fledderjohann on September 9, 2011 at 11:52am — No Comments

Side-Stepping the Co-Employment Trap 1: What is Co-Employment?

Contracting offers employers the flexibility they need in this economy to easily adjust their workforce to their business needs. But some employers are gun-shy about utilizing contractors out of fear of co-employment issues. In this series, we will examine the co-employment risk and how your client companies can minimize that risk when utilizing contractors.

Co-employment exists when two or more legally separated employers share potential or actual employer…

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Added by Debbie Fledderjohann on September 9, 2011 at 11:51am — 1 Comment

Internships As a Way to Evaluate Future Employees

Companies that simply view interns as cheap labor could be missing out on a great opportunity, according to a Bloomsberg Businessweek "Today's Tip" post by Jim Belosic, Founder of ShortStack.

Instead, Belosic recommends that employers look at internships as an "extended…

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Added by Debbie Fledderjohann on August 22, 2011 at 4:24pm — No Comments

Double-Dip Recession Unlikely Based on Contract Staffing Numbers

With unemployment still around 9 percent and all of the uncertainty that has stirred up in Washington over the debt ceiling debacle, talk about a potential double-dip recession is resurfacing. But a sequel to the Great Depression is unlikely based on the demand for temporary/contract workers,…

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Added by Debbie Fledderjohann on August 22, 2011 at 4:22pm — No Comments

Recruiting the Best Candidates for "Virtual Teams"

An interesting article on ERE.net discusses the qualities that help workers successfully work from home on "virtual teams." While the article is addressed mainly to employers, recruiters placing candidates who will be allowed or required to work on projects from home, possibly on a contract basis, can gain some helpful…

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Added by Debbie Fledderjohann on August 4, 2011 at 1:20pm — No Comments

Could Contracting Be EASIER Than Direct-Hire?

Many recruiters shy away from contracting because they think it is too complicated. But as we pointed out in our last blog post, when a recruiter uses a contracting back-office, the process is actually very similar to a direct-hire placement. In fact, in many ways, contract…

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Added by Debbie Fledderjohann on July 6, 2011 at 4:00pm — No Comments

What You Need to Know to Do Contracting (Hint: It's Only One Thing, and You Already Know It!)

You already know that  you should do contracting. You know it can help you keep income flowing when direct-hire job orders are sparse. And you  know that more and more of  your clients want contractors and are probably going to your competitors to get them.

So why aren't you doing it?  Well, there's a misconception out there that contracting is hard.  Let's face it, it sounds hard. Who is the legal employer of the contractors? What…

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Added by Debbie Fledderjohann on July 6, 2011 at 3:57pm — No Comments

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