Dec 29, 2022
Dear Just Ask Judy:
My client would like to bring a former employee back to work but
cannot do so because the employee accepted a severance package last
year that prohibits him from returning on a W-2 basis. Any
suggestions on how I can help my client with this issue?
… Stressed in St. Louis
Dear Stressed in St. Louis:
This question has come up a lot because of the “Great Resignation.”
With rapid changes in the economy, it has become harder for many
people to make ends meet. Going back to work as a contractor on a
special project could be beneficial to both your applicant and your
client company.
This is the perfect opportunity to use a third-party employer of
record (EOR) service. I spoke to Angela Alberty of MyBasePay to get
some guidance. Angela outlined the benefits of using an EOR service
and explained how this can be a win-win situation for all!
Angela commented that a great resource for recruiters is this pool
of experienced, qualified personnel who recently left their
previous employers. An EOR can take the employee on as a W-2 and
can collect the employee’s time, pay the employee weekly, and
invoice the client company for hours worked. Your client is
protected from unemployment claims and minimizes their overhead
burden and risk exposure. Your applicant may not need a new career
but merely wants to supplement their income. Since they are already
familiar with the client company’s work environment, their
qualifications and experience make them immediately productive.
Angela noted that an EOR also provides for withholding taxes,
issuing W-2s, and offering a benefits package. For client companies
that are faced with hiring restrictions but still need to keep
their business processes flowing, it may be attractive for them to
include a line item in their annual budget for contract labor.
Contract labor through an EOR can be closely controlled and has no
further cost implications and offers none of the long-term risks or
burdens of direct-hire employees. This flexible approach will allow
you to solve your client’s labor needs and will enable you to tap
into a significant reservoir of talent!
I appreciate Angela taking the time to explain the advantages of
establishing a relationship with an EOR service to bring these
experienced workers back into the force. You can contact Angela at
angela@mybasepay.com if
you would like more information on how she can help you!
Don’t let a severance package prevent you from making these
placements!
Judy