How are contingent workers paid?
Contingent Workers Contingent workers are typically defined as people who are not employees of a company. Instead, these workers are freelancers who might work under a contract, on a temporary basis or provide consulting services as needed. Many companies consider salespeople as contingent employees. Instead of receiving a salary, a contingent worker receives payment or commissions for completed work. Contingent workers cannot be told how to complete a project, as they work for themselves. The company's focus with contingent workers is not how the work gets done; the focus is on the results. Contractual Employees All employees who are hired in states with at-will employment guidelines are contractual employees whether there is a written agreement or not. The IRS defines these employees as common-law employees. At-will employment allows an employer or employee to terminate the work relationship at any time without cause. As long as employees meet the rules of employ