Summary
Independent contractors or temporary workers
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Extract
The Contingent Workforce.
In the U.S. workplace, a growing number of employees are being classified as independent contractors or temporary workers. Although the emergence of the "contingent workforce" has been acclaimed on many fronts, no organization can afford to overlook the huge financial risks associated with misclassification.
FOR MOST OF THE 20TH CENTURY, THE U.S. WORKFORCE was primarily composed of full-time employees who received long-term benefits. During the last decade, however, a contingent workforce of independent contractors; leased employees; and part-time, seasonal, and temporary workers has emerged. Management has embraced the concept of a contingent workforce largely because of perceived cost savings. In addition, a contingent workforce can offer flexibility in workforce size, decreases in contributions to employment taxes and employee benefit plans, and reductions in obligations and expenses related to labor law. Despite the potential benefits, however, the contingent workforce can create significant exposures through misclassification of employees. Although many internal auditors are aware that misclassification might result in i...See the full content of this document
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