When you need to keep up with changing employment regulations and laws, partnering with a W-2 staffing firm like Specialized Recruiting Group (SRG) will keep you in compliance while ensuring your company receives quality, professional-level staffing.
Misclassification of contractors or employees can impact benefits, pay, and protections that employees are entitled to under the Fair Labor Standards Act (FLSA), and correcting misclassification may be costly for employers. Partner with a W-2 staffing firm to avoid being penalized for misclassification of a contractor or employee.
W-2 vs. 1099 Staffing Firms
W-2 Staffing Firms
Liability: Provides professional liability and workers’ compensation insurance for temporary workers on your premises.
Evaluated Staff: Candidates are fully vetted through skills matching and interviews.
Payroll Taxes and Benefits: The staffing firm handles payroll taxes and other employer costs, including benefits.
Quality: Employees are typically more committed, loyal, and productive since they receive benefits, training, and support.
1099 Staffing Firms
Liability: Most 1099 staffing firms do not offer professional liability or workers’ compensation insurance for staff working through their platform.
Evaluated Staff: Skill verification is typically minimal, potentially putting your organization at risk for high turnover.
Payroll Taxes and Benefits: You may be viewed as the employer because you are supervising the work and may be liable for payroll taxes and other work-related costs.
Quality: Independent contractors often work under minimal supervision, without ongoing evaluations from the company that recruited them.
About Specialized Recruiting Group
Specialized Recruiting Group (SRG) delivers top-tier professional talent solutions. SRG supports local business communities and professionals seeking new career opportunities by offering a consultative and collaborative approach to professional staffing. For more information, visit SRGPros.com.
Last Updated on February 6, 2026
