Independent Contractor Payroll: How to pay contingent workers
Independent Contractor Payroll refers to the tasks an organization must execute to ensure Independent Contractors are paid correctly and on time in accordance with their contract or Statement of Work (SOW). Independent Contractors are not employees; therefore, employers are not responsible for the withholding, collecting or paying of the Independent Contractor’s taxes nor any other payments.
Amid today's ever-evolving work world and economic climate, more and more organizations are turning to remote and ready contingent workers, or Independent Contractors, in order to quickly and efficiently reach their corporate goals.
Yet, while engaging Independent Contractors comes with many benefits, operating an Independent Contractor Payroll program is often complex and confusing to both enterprise-level organizations and small business owners.
If you're an employer who is operating, or is thinking of operating, a blended workforce powered by both traditional employees and Independent Contractors, it's important to be aware of the legal and tax obligations you have to your workers when it comes to payroll.