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Contingent Worker FAQs
Document Number: 18160
The following are Frequently Asked Questions about hiring contingent workers and PeopleSoft's contingent worker policy:
What are contingent workers and how can I identify if any work for me?
What will be the most significant impact of the Contingent Worker policy?
Where can I get more information regarding this policy and how to obtain a Contingent Worker?
Once I know who is defined as a Contingent Worker, can't I just hire him/her as a regular employee?
Where can I find the proper form to bring on a Contingent Worker?
What if I find the person that I want to bring on temporarily?
For information on hiring a contingent worker (Services Procurement) using eProcurement, see Eureka! document 18145 — Services Procurement Frequently Asked Questions or the list of Eureka documents.
What are contingent workers and how can I identify if any work for me?
Contingent workers are contracted temporary workers who provide their services independently or through a third party and who are not paid through PeopleSoft's payroll system. They generally fall into three categories:
Type 1: Outside consultants hired for projects requiring specialized expertise, such as sales promotion specialists assisting Sales and Marketing PeopleSoft programs. If there's a business necessity, a Type 1 contingent worker may stay on a project for an indefinite amount of time. Consultants are usually W2'd employees of a Consulting firm and work for a fixed fee.
Type 2: Contractors or Temporary professionals retained in non-clerical capacities for short-term projects. An example would be the computer programmers normally contracted through "specialty" agencies servicing a niche market. These are always W2'd employees of a firm other than PeopleSoft, or set up as a legitimate incorporated business.
Type 3: Clerical or administrative contract workers hired through an employment or temporary agency to perform tasks on a temporary time-for-pay basis also augmenting staff. This category would include an administrative assistant hired to help with a departmental move, filing or answering calls, or to fill in for an employee on vacation. These are always W2'd employees of a agency or firm other than PeopleSoft.
Note: Both Type 2 and 3 Workers can be called "temps" or contractors interchangeably. Although the industry from time to time classifies professionals working on a temporary assignment as Contractors, PeopleSoft uses the term Contractor to represent workers of a large company under contract with PeopleSoft performing outsourced services as seen in Facilities.
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What is PeopleSoft's Contingent Worker policy?
Highlights of the new policy:
Workers engaged through an outside source can work at PeopleSoft for an indefinite period of time as long as the worker is classified correctly and is treated as a Contingent Worker and not an employee (See Manager's responsibilities). HR will monitor the length of assignment to ensure the need for an FTE is assessed periodically.
No one will be allowed on PeopleSoft's property, incurring costs to the company, as a contingent worker unless covered by an authorized requisition, contract and security clearance.
Preferred suppliers and firms must be utilized.
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Why are we implementing this policy?
We're implementing this policy because we need to:
Manage resources - including human resources - wisely. The long-term use of contingent workers could result in core PeopleSoft skills residing in non-employees rather than among the many talented people in our own ranks.
Leverage PeopleSoft's buying power. We can save money if we utilize a controlled preferred supplier base that provides us substantial buying power.
Properly classify workers as either consultants, contractors or temporary workers (a third party assumes payroll tax and most insurance and employment law liabilities).
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What will be the most significant impact of the Contingent Worker policy?
CSG will control the external sources used in obtaining our contingent workforce and will negotiate the lowest possible mark-up and conversion rates, positively affecting the manager's budget.
PeopleSoft will demand that any Contingent Worker on our premises has a valid contract in place to ensure proper insurance, security, non-disclosure, ownership of work and tax issues are addressed before any such worker starts.
The policy ensures proper classification of all workers contracted to meet PeopleSoft's objectives.
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Where can I get more information regarding this policy and how to obtain a Contingent Worker?
CSG has developed a detailed policy and procedure located on Planet PeopleSoft to walk you through the process of engaging new workers. They will monitor workers' length of stay, along with their employers, to ensure that you are notified when workers are close to their term dates. They will also walk you through the process of extending or obtaining exceptions if the need arises.
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Once I know who is defined as a Contingent Worker, can't I just hire him/her as a regular employee?
Only after Human Resources and CSG have assisted you in properly hiring them. Sometimes there are fees associated in converting Contingent Workers into an FTE.
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Where can I find the proper form to bring on a Contingent Worker?
You will find the requisition on Plant PeopleSoft under the Contingent Worker section using our Psynergy/FSCM tool.
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A Preferred Supplier is a Agency or Firm supplying PeopleSoft with Contingent Workers under an existing contract with special negotiated mark-up and conversion rates. Purchasing qualifies all suppliers to ensure that they are incorporated, have valid business licenses and associated insurance coverage.
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What if I find the person that I want to bring on temporarily?
If they do not qualify as a legitimate business, PeopleSoft will direct the individual to a "Preferred Supplier" to sign up as a payroll participant through a 3rd party, protecting PeopleSoft from any liabilities associated with doing business with an individual under their social security number.
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Created by the PeopleSoft Knowledge Management Team.
Copyright © 2003 All rights reserved.
Created: jw 12/08/2003
Reviewed: 10/12/2004
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