Last Wednesday, Emergent’s President Bill Inman presented a webinar on “The Pitfalls of Payrolling (and employing) Temporary Workers” to HR.com members as part of HR.com’s Two Day Payroll Conference.
While the contingent workforce is experiencing huge growth, payrolling these workers can present its own set of challenges, with companies often misclassifying workers and misunderstanding employment laws relating to temporary workers. Unfortunately, simple mistakes can often prove very costly, opening companies up to expensive and time-consuming litigation.
Over 74% of HR managers polled during the presentation said that their contingent workforce was continuing to grow, with 30% of them saying that they had experienced a significant increase in the use of temps and project-based workers at their organizations.
However, despite all the compliance issues associated with employing contingent workers, 68% of HR professionals polled said that their company did not track the employment practices of their staffing suppliers – leaving themselves exposed to a huge amount of risk if dealing with a staffing company whose employment practices are less than solid.
In fact, 16% of companies didn’t have a specific department, team or individual responsible for engaging temporary help, meaning that the signing of staffing agency agreements could be left down to departmental hiring managers inexperienced in the latest employment law and best practices.
Our poll also found that none of the HR members polled provided any kind of training or handbook for managers on how to properly engage contingent labor.
Bill’s presentation covers many of the common (and costly) mistakes made when payrolling and employing temporary workers, touching on Misclassification, Wage and Hour laws (including state specific forms, Fair Labor Standards Act, Meal Penalty and Rest Violations) as well as W-2 processing, Tax Remittance, Work Comp Code Misclassifications, Unemployment Claims Management and much more.
You Can download a copy of the Presentation here: http://emergent.com/blogs.aspx?id=2147483930
For the latest Contingent Workforce News and Trends, visit www.emergent.com