What is contingent employment?

Contingent employment means a worker’s position with a company is temporary. The individual is not an employee of the business, and therefore isn’t hired on a permanent basis. Typically, contingent workers are hired to complete a project.

Who are contingent workers? Independent contractors, on-call workers, freelancers, contract workers, and any other type of individual hired on a per-project basis are examples of contingent staffing.

In most cases, contingent workers have specialized skills, like an accountant or electrician. Unlike regular employees, a company doesn’t always need to tell a contingent worker how to complete a project. Instead, contingent workers use their judgment.

If your client wants to hire a contingent worker, they generally do not need to handle employment taxes. Contingent workers who are independent contractors are responsible for paying their own taxes because they are self employed. Contract workers are on the Employer of Record’s payroll, not your client’s. The Employer of Record might be you or another third party provider of contract staffing back-office services.

Contingent workers know they are not part of a company’s permanent staff. Sometimes, contingent work can turn into permanent employment, like if your client wants to hire a contract worker full time. This type of arrangement is known as a contract-to-hire agreement.