Employee Classification: What You Need to Know
Are you a small business owner?
If so, you already understand how challenging running a business can be. After all, there’s so much you need to do to keep your business running that it seems like you can barely have time for anything else. Without this time, you won’t be able to reach your profitability goals.
For this reason, you need to do everything possible to make your business as efficient. One area that many business owners overlook is worker classification. You might not know what worker classification is or how it affects your small business, but understanding it is crucial.
Do you want to learn about employee classification and how it affects small businesses? If so, you’re ready to find out how worker classification affects you and what you need to do today.
Keep reading to learn more!
Full-Time and Part-Time
Full-time employees are those who work at least 30 hours per week. They usually receive benefits such as health insurance and paid holidays. They may also receive vacation and sick days, retirement plans, and other perks.
Part-time employees work fewer hours than full-time employees, usually 20 or fewer per week. They typically receive limited benefits, if any, and have access to fewer opportunities for development.
Different employers have different policies regarding full-time and part-time employees, and benefits may differ from employer to employer.
You can also check this page to ensure proper employment and onboard the contract workers you need!
Permanent and Temporary
Permanent employees have an established ongoing relationship with a company and whose position is of indefinite duration or foreseeable length. On the other hand, temporary employees are hired for a specific and defined period, usually ranging from a few months to a year.
Employers should be aware of the different requirements for hiring permanent and temporary staff and be familiar with the legal issues associated with each.
They should also have proper documentation in place and up-to-date policies and procedures in place to ensure compliance with the necessary legal requirements and to ensure the health and safety of all employees.
Interns and Apprentices
Interns and apprentices are not employer employees; therefore, they are not entitled to the same benefits as regular employees. Interns generally possess a set of educational goals, are students or recent graduates, and are working to gain experience in a specific field. Apprentices receive on-the-job training for a particular trade and are usually supervised by a certified professional.
Both interns and apprentices may receive monetary compensation. However, often they are unpaid. To protect both the employer and intern/apprentice, it is important for businesses to create clear expectations and job descriptions, to educate the intern/apprentice on the expectations before beginning their role, and to ensure that state and national labor laws are followed.
The most important thing for an employer to know is that contractors should be independent and should not be reliant on the employer for working instructions, resources, or materials.
In addition, contractors should be hired to work at an agreed rate per project rather than a normal salary or wage.
Employee Classification Guide
Overall, employee classification is an important part of understanding employers’ different roles and regulations. Taking the time to research and become informed is necessary and can help employers and employees know their rights and responsibilities.
For more guidance, contact a workforce provider to ensure you remain compliant.
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