Due to an increase
in demand from a number of our clients, The Adkins Group is also offering
the flexibility and cost efficiency of employee contract services. These
services are geared for companies that have urgent short to long term
staffing needs, but are not interested in adding to their bottom line
headcount.
Common
Situations in Today’s Business Environment
Contractors have
become an integral part of every company’s staffing strategy.
Contractors provide the flexibility in staffing needed to accommodate
a changing economy, to handle temporary increases in workload, to efficiently
launch new projects, and to discover new approaches to problems from
industry experts acting as consultants.
Here are a few questions
you might want to ask yourself. Surprisingly, contractors can be the
answer
- Do you have a
special project or deadline that you need to meet?
- Do you need to
reduce IRS risk associated with 1099 independent contractors?
- Do you want to
evaluate a candidate’s skills prior to offering him/her a permanent
position?
- Do you need workers
to keep up with the demand, but don’t want to add head count
to your permanent staff?
- Do you want to
avoid layoffs and bad press?
Industry demand
for contract staffing is once again beginning to grow. Here are some
of the most common reasons why companies of all sizes are using contract
staffing services:
- Staffing Flexibility
- Contractors provide a flexible supply of labor and allow you to
effectively match your workload to your workforce.
- Budget Constraint
Circumvention - Funds for contractors usually come from a different
pool of money. As a result, your company can use an alternate budget
to bring on contractors and still get the job done even when your
firm is experiencing a budget constraint.
- Headcount Issues
- Even if you have a current hiring freeze, contractors can become
your most feasible alternative. Many contractors can convert to permanent
employees when and if you desire.
- End of Assignment
Flexibility - When your requirements diminish, you can easily adjust
your labor supply. No layoffs, bad press, or lasting labor burden.
- Hire for a Specific
Project or Purpose - Contractors can be hired for a specific purpose
or specific project. Contractors are ideal because they are available
as needed.
- Immediate Availability
- Unlike permanent employees, contractors are typically available
on short notice. Usually within days of your "announcement of
need."
- Try Before You
Buy (Temp-to-Perm) - Contracting provides an opportunity to "test
drive" a potential permanent hire before you make a long-term
commitment.
- Avoid IRS Scrutiny
From 1099 Issues - In recent years, the IRS has begun to realize the
large sums of potential tax revenue they are losing due to misclassified
1099 independent contractors who should legally be W-2 employees.
The employee tax deductions include: federal and state income tax,
and social security and Medicare. In addition, if The Adkins Group
handles the back-office, we will pay all of the necessary employer
taxes, including social security and Medicare, federal and state unemployment
tax, and workers' compensation.
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