Payroll refers to the tasks an employer must perform in order to pay traditional employees. Contingent workers, such as an Independent Contractor, is not an employee, and therefore, must be paid through a separate payroll model. These contractor services can also be outsourced to a third party.
If your organization operates, or is thinking of operating, a blended workforce, it’s important to know the legal and tax obligations you have to your workers when it comes to contingent worker payroll.