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Can I Fire (normal payroll) and Rehire on a Contract Basis?

I had to let go of an employee 2 weeks ago, but finding a replacement has proven difficult. I made the difficult decsion to allow him to come back for 2 nights ONLY (allow another employee time off) to help us out. Can I pay him for contract work (i.e. no taxes, seperate check) or is this a lawsuit waiting to happen? Do I need to rehire him back to the payroll and then fire him again?

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  • 1 decade ago
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    He is an employee by IRS rules.

    If you incorrectly classify an employee as an independent contractor, you can be held liable for employment taxes for that worker, plus a penalty.

    No need to hire and fire each time. He is just a part time employee without a long term schedule. This is very common.

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