What is direct employment?
What is indirect employment?
Thank you!
2006-09-25 13:49:59 · 3 answers · asked by Anonymous in Education & Reference ➔ Other - Education
A direct employee would be one that works directly within a company; a sales associate or manager. An indirect employee would be someone like an accountant or a consultant, who may be directly employed with another firm, but get paid for the services they provide to another company.
2006-09-25 13:52:53 · answer #1 · answered by Joy M 7 · 0⤊ 0⤋
The easiest way to tell the difference is the company name on the paycheck. If the company you say you work for isn't the name of the company on the check, it's indirect.
Also can mean(depending on what country you're in) that you're contracted in under your own business as opposed to recieving full-time benefits. They pay your business for a service, you come in as acontractor. The checks are written to the business and not you(though the name of the business can be your name).
This way a company can avoid serverance fees, taxes, social security, health care...its a way of avoiding employee overhead.
As a business owner, I can pay a contractor $20 an hour, or I can pay a direct Employee $10 an hour and still shell out the same amount of money to stay legit in the government's eyes.
2006-09-25 14:02:29 · answer #2 · answered by Roadpizza 4 · 0⤊ 0⤋
Let me give you an example. If General Motors hires you for a job with General Motors, that is Direct employment. If, however, you get Placed with a hiring agency, that is indirect.
2006-09-25 13:52:26 · answer #3 · answered by Jason W 2 · 0⤊ 0⤋