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Relationship: Temporary workers are employees of your company or a staffing firm. In contrast, independent contractors are not employees. You're partnering with another business. Benefits: Temporary employees may qualify for benefits, whereas companies may provide different perks for freelancers.
The Pandemic Unemployment Assistance program, known as PUA, for the first time provided coverage for gig workers and independent contractors, who don't pay into state unemployment systems. The PEUC fund provided payments to people who exhausted their regular unemployment benefits.
A temporary worker is your employee or an employee of a staffing agency, whereas an independent contractor is a business entity, such as a sole proprietor or limited liability company (LLC). Temporary and contract workers can add value to your organization, but misclassification can land you in legal trouble.
Often Independent Contractors are completely unaware that they are not Employees as defined in South African labour legislation and therefore unprotected by labour legislation.
Seasonal / Temporary Employees Can't Be Paid as 1099 Independent Contractors in Business and at Work.
The only reason a temporary worker would receive a 1099 is if that worker is independent of an agency and is self-employed.
The main pieces of employment legislation, chief among which are the Labour Relations Act 66 of 1995 (LRA) the Basic Conditions of Employment Act 75 of 1997 (BCEA) and the Employment Equity Act 55 of 1998 (EEA), apply to employees and not independent contractors.
A 1099 worker is one that is not considered an employee. Rather, this type of worker is usually referred to as a freelancer, independent contractor or other self-employed worker that completes particular jobs or assignments. Since they're not deemed employees, you don't pay them wages or a salary.
Employees in South Africa are entitled to certain minimum employment benefits, while independent contractors are not. Subject to some exclusions, all employees are entitled to a number of statutory minimum entitlements and basic conditions of employment.
The United States Department of Law (DOL) defines a temporary or 'temp' employee as one who is hired to work for one year or less with a specific end date.