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KEYS to a Successful Payroll Service for Independent Contractors

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The Contractor Engagement Checklist we produced last week prepares the employer of record for the proper on-boarding of a contractor to avoid any problems later.  The continuity and ease of this administration ultimately gives the client, where the contractor is working, a positive experience.

However, you and your contractor have an important role to play to ensure that the relationship is a successful one. Below you will find some keys to professional conduct that will make the relationship go smoothly and insure a positive outcome for all involved.

CONTRACTOR RESPONSIBILITIES:

• The contractor should remain professional during request review, during negotiation period (if any) and in his email communication to you.
• The contractor should understand that the terms and conditions in the agreement have been thought through, approved by legal and are difficult to change. If concerns arise in regards to any of the clauses in the agreement, they should reach out to the corporation (client or PEO?) for clarification. If a change to a clause is necessary then the contractor should make the recommendation, and the corporation should get it approved by their legal counsel before any changes are finalized.
• Contractors should not arbitrarily change something in a contract by hand and initial the change expecting that change to be an accepted or legally binding.   Conversely, the contract recipient, not counter initialing the change does not constitute non-acceptance but actually could legally render the entire contract null and void.  Check with your legal counsel for a more definitive opinion.
• The contractor should return all documents within the timelines established.
• The contractor should be available for the timekeeping training, submit approved time sheets within the established timelines so you can pay according to the payment schedule.

  EMPLOYER OF RECORD RESPONSIBILITIES:

  • The company should set clear timelines and schedules for when time and expenses are due for processing.
  • The company needs to ensure that the contractor has provided clear payment documentation in order for them to accurately pay the contractor.
  • Employer of Record should insure that the payment terms for the contractors is clearly outlined and understood.
  • Communication is key. It is important for the contractor and the corporation to return emails and call backs on voicemail messages immediately. The contractor should acknowledge any information sent by the corporation via email or regular mail. A service deliverable guideline should be established by the corporation, and, the contractor should respond by taking into consideration the timelines and by reading the communications that are sent by the company informing him of any changes or upcoming events.
  • The contractor should manage this relationship as he would any business opportunity. Whether dealing directly with the corporation (client) or with a vendor (PEO) his behavior today will make all the difference in obtaining opportunities in the future.

  CUSTOMER EXPECTATIONS:

  • Providing no disruptions to the work that the contractor has been required to perform what should be delivered. The customer could not be happier than having a contractor delivering the services they were hired for! A happy contractor is one that delivers and that is on boarded with top notch service, is paid accurately and on time. This can only happen if the corporation and contractor maintain a successful relationship!

    Are you getting thin in your organization?  Not sure, come take our Risk/Reward Assessment and find out if you are getting the most out of your contractor workforce.