兴趣爱好In comparison, independent contractors are self-employed. They may also be referred to as freelancers, contract workers, independent consultants or gig workers. You don't pay payroll taxes or count them as employees for governmental reasons, such as the employee threshold for the Family Medical Leave Act (FMLA). If your company pays $600 or more to a freelancer, you must provide them with a 1099-NEC form. This guidance document was issued upon approval by vote of the U.S. Equal Employment Opportunity Commission. One of the most popular pricing models for staffing agencies is charging the employer a markup on the employee’s hourly rate or salary. For example, if the agreed markup percentage is 30% and the employee rate is $50/hr, the staffing agency would receive $15 for every hour while the employee receives $35/hr. An employer can expect to pay anywhere between 20% – 30% of the employee’s first year’s salary.