Definition - What does Work Provider mean?
A work provider is an individual or organization that hires a person or company to carry out work on their behalf. The hiring arrangement is normally for a specific time period and for a particular amount of work. While the hired person, or company, takes on accountability for the tasks and obligations from the work provider, these tasks and obligations still remain the ultimate responsibility of the work provider.
WorkplaceTesting explains Work Provider
A work provider may hire the services of a third party in order to save costs or time, or to utilize specialized skills and expertise that may be required for a particular job or project. A typical example of this is a building construction company that hires painters, plumbers, tilers, and electricians to carry out work on a particular project. The third party is normally referred to as either a subcontractor, independent contractor, freelancer, or vendor. With this arrangement, a work provider does not need to pay payroll taxes, insurance, or benefits as he would for an employee carrying out the same work. However, by taking on the services of a third party, the work provider loses some measure of control over the quality of the work executed.
It is important to note that work providers can not simply declare workers non-employees to avoid costs. There are government regulations and tax codes that outline and define an employee and a non-employee and how they may be treated.