You found the right person for a limited time. Here is how to employ them properly, without putting them on your own payroll.
A short-term worker you direct like a team member is usually an employee, not a contractor, however long the job lasts. So the real choice is who acts as the employer. You can hire them onto your own payroll, use a staffing agency if you still need to find someone, or, if you have already found the person, use an Employer of Record that employs them for as long as you need them.
You already know who you want. What is missing is a good way to employ them for a limited time.
Someone to keep a role running for a few months while a colleague is on leave.
A specific skill for a specific project, from kickoff to launch.
The work cannot wait, but permanent headcount is frozen.
The person you found will not work as a contractor, or your client requires W-2 employees.
It is tempting to treat a three-month job as a contract. But the IRS and state agencies look at how the work is done, not how long it lasts. If you set the hours, direct the work, provide the tools, and the person has no independent business, they are usually an employee, whether the job lasts three weeks or three years.
A 1099 contract does fit when the person genuinely runs their own business: several clients, their own methods, their own tools, and the ability to make or lose money on the work. Not sure? Take the contractor or employee test.
The main differences are who finds the person and who is the legal employer.
| Who finds the person | Who is the employer | What you pay | Fits when | |
|---|---|---|---|---|
| Your own payroll | You | You | Wages plus your own payroll taxes, insurance, and admin | You are already set up in their state and have payroll capacity |
| 1099 contractor | You | Nobody: they run their own business | Their invoices | They genuinely run an independent business and control how they work |
| Staffing agency | The agency | The agency | The agency's bill rate, which includes its recruiting margin | You still need someone to find the person |
| Employer of Record | You | The EOR | Their pay plus the EOR's fee | You have already found the person and want them employed properly, fast |
More detail in EoR vs. staffing agency.
A short assignment does not switch off employment law. Details depend on the state where they work.
Federal and state wage-and-hour rules apply to temporary employees exactly as they do to permanent ones, including overtime for non-exempt roles.
Many states and cities require paid sick leave that starts accruing from the first day of work. Short assignments are generally not exempt.
A temporary employee needs coverage in the state where they work from day one, the same as anyone else.
The employer pays state unemployment tax on their wages, and they may be able to claim unemployment when the assignment ends.
If an employer has 50 or more full-time employees, including full-time equivalents, temporary employees who average 30 hours a week count under the Affordable Care Act. A narrow exception applies to seasonal workers.
State wage notices and workplace postings apply to temporary hires too, including remote ones.
The end of a short-term job is where most mistakes happen.
Each state sets its own deadline for the last paycheck, and some require it on the last day. Check the state page for where they work.
When a temporary job ends, the person may file for unemployment. The claim goes to the employer of record for the job, and the employer responds to the state.
Put the expected end date in the offer, and confirm it in writing when it arrives. It avoids misunderstandings on both sides.
WorkGenius employs the person you chose as a W-2 employee in their state, from day one to the last paycheck, for as long as you need them. No minimum length, and no recruiting margin for a search you did yourself.
Which one fits depends mostly on whether you have already found the person.
Put them on your payroll as a temporary employee, with an end date in the offer. You run payroll, taxes, insurance, and the end of the assignment.
Makes sense when
The agency finds the person and employs them. You pay its bill rate, which includes its recruiting margin.
Makes sense when
You found the person. WorkGenius employs them as a W-2 employee in their state for as long as you need them, with no minimum length.
Makes sense when
Want to keep them longer? Extend the assignment for as long as you need. If the role becomes permanent, they can stay employed through WorkGenius, or you can bring them onto your own payroll.
As the Employer of Record, WorkGenius is the employer for the whole assignment.
Good to know: because you direct the work, some shared-employer rules can still apply to you. Read more about co-employment.
Pricing is one all-in markup on the employee's pay, billed on one weekly invoice. Benefits are billed separately.
Tell us who you want to employThis guide is general information, not legal or tax advice. Rules change and vary by state.
We'll confirm what applies in their state and how quickly WorkGenius can employ them, for as long as you need them.
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