It’s no secret that the American tax code can get a bit complex. If you’ve never worked a temporary job before, you may be wondering how taxes will affect your take home pay. Fortunately, you have the knowledgeable staffing experts at CRG on your side. Let’s take a closer look at taxes for temps and what to expect in your paycheck when you sign that contract and start working with a new firm.


You Don’t Get a 1099

Temp employees generally have some flexibility, much like freelance workers. That being said, taxes for both types of workers present some major differences. A temp worker is actually an employee. That means they get a W-2 tax form, instead of the 1099 form that a freelance worker would receive. If you’re working multiple freelance jobs in the course of a year you generally need to gather up a bunch of 1099 forms when tax season rolls around. A temp worker just ends up getting a W-2 from the agency they’re employed through, even if multiple assignments were taken on by the temporary employee.


The Temp Agency Withholds Taxes

Because the staffing agency is the one giving out the W-2 forms to temporary employees, they’re also responsible for withholding tax and paying the employer’s portion of the payroll tax. A worker has to pay fifty percent and a traditional employer needs to pay the other half. A freelance worker pays the entire payroll tax themselves, covering the employee and employer share. That means that a temporary employee could end up with less taxes coming out of their paycheck compared to what a freelancer would eventually owe, but there’s a big caveat here that anyone who plans to go from freelance to temp employment should be aware of.



Because a temporary employee receives a W-2 and generally gets treated as an employee of the temp agency, they don’t get to write off some of the things that a freelancer, who may be incorporated and could act like a business for tax purposes, might. A freelance employee can write off the purchase of some supplies and equipment as a business expense. If you work from home, a home office deduction can also offset some of your tax burden.

This is usually not the case for a temporary employee. A temp is called in to work at a specific place with equipment that’s usually been supplied by the employer. They’re not stocking up a home office with what they need and deducting it from their overall income. Because of this, temps can expect deductions to work much like how they do at part time or full time jobs. If you’ve worked at positions like these before, you know a bit more about what to expect.


For Your Professional Staffing Needs in Charlotte, NC

So if you’re interested in a temporary position now that you know more about what to expect, contact CRG at 844-CRG-WORK. Before you know it, our team of professional staffing experts will be hard at work, helping you find that next stepping stone of your career. We look forward to working with you.