Independent Contractors and Temporary Employees

  • 4 topics | 21m
  • Up to 30 languages
  • Transcripts
As staffing needs change, many companies are hiring contract or temporary employees to meet those changing needs. Before hiring an independent contractor or temporary employee – also referred to as a contingency worker – companies should be aware of the costs involved along with the relevant legal and taxation issues. It is important that both parties have a clear understanding of the terms of their agreement with the appropriate distribution of risks and responsibilities. This course explains the differences between independent contractors and temporary employees, the benefits and drawbacks of both, and how to get the most out of your hiring practices. This course was developed with subject matter support provided by the Labor, Employment, and Employee Benefits Law Group of the law firm of Sheehan Phinney Bass & Green PA. Please note, however, that the course materials and content are for informational purposes only and do not constitute legal advice. Nothing herein, or in the course materials, shall be construed as professional advice as to any particular situation or constitute a legal opinion with respect to compliance with any federal, state, or local laws. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking professional counsel. The information contained herein is provided only as general information that may or may not reflect the most current legal developments. This information is not provided in the course of an attorney-client relationship and is not intended to constitute legal advice or to substitute for obtaining legal advice from an attorney licensed in your state.


  • distinguish between temporary and regular employees
  • identify the reasons for using temporary workers
  • distinguish between temporary and permanent employees, and the reasons for using temporary workers
  • determine a worker's status using the IRS three-part analysis
  • differentiate between independent contractors and regular employees using the IRS three-part analysis


  • Temporary Employees
  • Knowledge Check: Temporary Employees
  • Independent Contractor or Regular Employee?
  • Knowledge Check: Determining Worker Status