Temporary Workers

Question 1

Compensation

Answer 1

Temporary workers are subject to the same overtime and minimum wage requirements that are established by The Fair Labor Standards Act, or FLSA

Question 2

Who is responsible for compensating the temp employee?

Answer 2

the agency is solely responsible for paying the employee.

Question 3

T or F , Temp employees and Independent Contractors are considered Employees of the company and do not have to pay their taxes.

Answer 3

F. Temporary employees and independent contractors not employed by agencies are considered self-employed, and they receive 1099 tax forms. The organization is not responsible for withholding taxes, like medicare and Social Security. Independent contractors who make more than $600 in one year must use a 1099-NEC to report their earnings to the Internal Revenue Service (IRS)

Question 4

T or F. A Temporary employee cannot be paid through an organizations payroll system.

Answer 4

A short-term employee can also be paid through an organization’s payroll system and use a W-2. Taxes and other legally required deductions should be withheld from the employee’s pay.
If an employer directly hires a temporary employee and pays them through the organization’s payroll system (generating a W-2), the organization is responsible for providing workers’ compensation insurance coverage.