Misclassifying employees can be a costly mistake when tax time rolls around.
Employee classifications determine who is eligible for benefits and exactly what benefits you must provide, such as overtime pay and workers’ compensation.
Taking into account the distinctions between salaried and hourly payment structures, here’s a list of employee classifications that includes these categories alongside other common types of employment statuses:
Full-Time Employees:
Part-Time Employees:
Temporary Employees: Workers hired for a specific duration, often through staffing agencies, and can be paid hourly or receive a salary for the duration of their contract. Seasonal Employees: Individuals employed for peak periods, such as holiday seasons, and can be paid on an hourly basis or receive a fixed salary for the season. Contract Employees (Independent Contractors): Professionals contracted to perform specific tasks or projects, typically paid on a project basis or hourly rate, and not considered company employees. Interns: Students or trainees who might work for experience, college credit, or a small stipend/salary. The structure of their compensation can vary widely. Consultants: Experts providing professional advice or services, usually on a contract basis, and can be compensated on a project, hourly, or retainer basis. Casual Employees: Workers without guaranteed hours, working irregularly, and usually paid an hourly rate for times they are called to work. Remote Employees:
Exempt and Non-Exempt Employees:
These classifications offer a broad overview, but specific definitions and the applicability of labor laws may vary by country and local jurisdiction. |