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What Are the Different Types of Employees?

When starting a business, there are many things to consider. One important decision is whether or not you’ll have employees.

Handling payroll and entering the correct classification for the different types of employees is something you must know. Otherwise, you can find yourself facing employee tax troubles.

In this article, we’ll look at the different kinds of employees. Keeping reading to learn more.

Different Types of Employees Coexist in Businesses

When we look at corporations, it’s easy to see the different types of employees. Like pay scales, job functions require multiple levels of education and competencies.

In the beginning, you may want to hire a recruitment agency to figure out how to find the best employees. Over time, you can move these duties in-house and do internal hiring.

Let’s take a look at common types of employees.

Hourly Employees

Hourly employees are paid by the hour. When hiring employees, you’ll need to explain how many hours a week they’ll work and how much they will get paid for those hours. You’ll also have to determine if the employee is part-time or full-time.

Their classifications must have the distinction because a full-time employee is paid time-and-a-half for hours worked over 40 hours in a week.

Salaried Employees

Salaried or exempt are kinds of employees found in higher-level positions. They are often in a supervisory or managerial role.

A salaried employee can also be someone in a highly skilled high-paying position.

What makes a person exempt or salaried is that they are paid an annual salary instead of hourly compensation. Their salary is divided by the number of pay periods in the year. No matter how many hours they work, their salary will not change.

Contract Employees

There are several employee options a company can choose from when they have temporary duties to perform. Hiring contract employees is a great way to get the talent you need for specific projects.

Contract employees are not employees of the company. They usually get paid more than a regular employee but do not get benefits such as insurance, paid time off, or pay increases.

Seasonal Employees

Another employee option is seasonal employees. These are people you bring in during your busiest times of the year.

A great example of a seasonal employee is someone who’s hired during the holidays. Their typical assignment only lasts about six weeks.

Outsourced Employees

Outsourced employees are similar to contract employees. The difference is they do not work at your place of business. These employees work for a company you contract with to perform certain duties.

Popular outsourced employees are people that handle your company’s IT functions.

Hire Employees to Fit Your Company’s Culture

As you can see, there are different types of employees to consider for your business. The employee mindset should fit the classification you choose. Otherwise, they may not stick around for too long.

If you’re looking for more business tips, we have you covered. Please continue to browse our site for other useful articles.

Read Also: 5 Key Qualities to Look for in a Wholesale Printing Company

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