If you are thinking about hiring W2 event staff for an upcoming corporate, promotional, or private event, you need to know about the benefits of W2 event staffing.
From security to bartenders and beyond, staffing an event is an important and essential task. Event staffing with W2 staff can provide benefits you may not have considered before.
Not sure what W2 event staff can offer your event? Well, you've come to the right place. Keep reading to find out more.
W2 or 1099: What’s the Difference?
When you are hiring event staff you can use two main classifications. Independent contractors or employees.
The classification of your staff will affect things like the taxes you pay and your liability, so it is important to know the difference between the two and how they can benefit your business.
W2 Staff
Staff members that receive a W2 are employees. They are hired to work for your company as a permanent employee, or for an indefinite period of time.
They will join your company payroll, receive a regular salary or wage, and get access to all of the perks and benefits offered to your employees. This continues until they resign or are terminated.
1099 Staff
Independent contractors are considered independent business owners or self-employed individuals. Instead of getting a W2 and joining your payroll, they receive a 1099 form.
They get paid an agreed-upon rate usually for short-term gigs or one-time tasks for your company.
Many companies are starting to hire independent contractors for long-term needs. The appeal is the fact that they are required to pay their own taxes and you, as a client, are not required to withhold them as you do for regular employees.
But this is a grey area and can run some risks for your business.
What You Need to Know About the AB5 Law Requirement
Assembly Bill 5 is a law that took effect in 2020. It reclassified millions of independent contractors as employees.
It states that employers must use an ABC test to determine the correct worker classification. You must start out with the presumption that the staff is employees, and the burden is on you to show if they are actually independent contractors.
The ABC test scrutinizes three different criteria:
- Whether or not a worker is free from control and direction in the performance of services
- Whether or not the worker is performing work outside the usual course of the hiring company
- Whether the worker is engaged in a customarily independent trade, occupation, or business
It is extremely important to have thorough documentation and correct staff classification to avoid hefty penalties and fees.
Benefits of Hiring W2 Event Staff
The benefit of hiring your staff as W2 employees is that you can avoid unnecessary risks.
Adding event staff to your payroll will mean you are responsible for their withholdings and benefits. But it also means there is a significantly less likely chance you will end up defending yourself against claims from independent contractors claiming to be employees.
One class-action lawsuit can be enough to shut some businesses down. And the IRS and your local city and state authorities may be able to levy additional penalties and fees against you if you make the mistake of misclassifying staff.
Avoid all of this stress by partnering with a quality event staffing service that can provide W2 staff for your event needs.
Get the Right Staff For Your Event Today
Now that you are aware of the risks that come with misclassifying event staff you can avoid these issues while event planning.
Use our event staffing services to find the right staff without any headaches. Request a quote today.