Written by HR for Health, partner of DirectDental
HR for Health specializes in HR compliance, payroll, and employee management, which are built specifically for dental and healthcare practices. Whether you’re managing a full-time team or a temp for a single day, our tools make it easy to stay compliant without the administrative headache.
A word from Holli: “How do I pay my temp? That is a question I get asked all the time. Back when we only serviced California, that was easy to explain. Now that we staff temps in all 50 states, not so easy. So I asked my friends over at HR for Health to put together a blog post to explain how it all works and to keep you compliant with the ever changing labor laws. Enjoy!”
When your dental team is short-staffed, temporary employees can be a lifesaver, filling in quickly to keep your operations running smoothly. However, while hiring a temp may feel like a short-term fix, how you pay that temp can have long-term compliance consequences if not handled correctly.
When it comes to paying dental temps, there are a few critical things you need to know, especially if you’re doing it directly.
Why Paying Temps Correctly Matters
Some dental practices mistakenly think that because a temp is working only a day or two, they can skip over typical HR procedures. Others might assume that if a staffing agency provides the temp, they’re off the hook entirely.
But if you’re paying a temp directly—even just once—you’re considered the employer. That makes you responsible for everything from wage compliance and tax withholding to issuing paystubs and reporting income.
In states with stricter labor laws, such as California, New York, and Washington, these rules are especially critical. Failing to follow proper payroll processes can result in costly fines, wage claims, and legal exposure.
Employee or Independent Contractor?
This is the most important question when paying a temp. Many temps may present themselves as independent contractors, but in most cases, they do not meet the legal standards for that classification.
A temp likely qualifies as a W-2 employee if:
- You determine their hours and work schedule
- You provide the equipment and workspace
- They’re filling in for a regular team member
- They don’t operate their own independent dental business
States like California use the ABC Test to evaluate worker classification. It’s notoriously difficult to justify 1099 status under this test for temporary clinical staff.
What’s the risk of misclassification? If the IRS or your state labor department determines a worker was incorrectly paid as a contractor, you could owe back wages, unpaid taxes, penalties, and more.
This is where an all-in-one payroll and compliance solution like HR for Health’s makes a major difference—it helps you properly classify workers at onboarding and adjusts workflows accordingly, reducing your legal exposure from day one.
Checklist: What You Need Before a Temp Starts
Before a temp hygienist or dental assistant sets foot in your office, make sure you have their documentation in place. Yes—even for a one-day assignment.
Here’s what to collect:
- W-4 Form (federal tax withholding)
- I-9 Form (employment eligibility verification)
- State tax forms, if applicable
- Direct deposit authorization
- Employee handbook acknowledgment
- Wage notice (required in many states)
- Offer letter or temp agreement
- HIPAA and OSHA acknowledgments
Keeping this documentation organized is critical. If you’re juggling multiple platforms—or worse, using manual processes—things fall through the cracks. With an integrated payroll and HR system, you can automatically generate, store, and manage these documents in one place.
Real-World Example: A Costly Mistake
Let’s say a dental practice in California hires a temp front desk coordinator for two days. They pay her by Venmo without issuing a paystub, collecting any tax forms, or providing a meal break. A few weeks later, she files a complaint with the California Labor Commissioner.
The practice is investigated and fined for:
- Wage statement violations
- Missed meal breaks
- Misclassification as a contractor
- Failure to withhold payroll taxes
The total? Over $12,000 in fines, back pay, and legal fees—just for two days of work.
This is a completely avoidable situation. A modern payroll platform that includes compliance alerts, paystub generation, and proper tax withholding can protect your practice from issues like this.
Payroll Best Practices for Temps
Here’s what to remember when processing payroll for a temp:
Pay on time: Many states require prompt payment—even same-day in some cases—for short-term employees.
Include detailed paystubs: Hours worked, hourly wage, taxes withheld, and other deductions must be clearly itemized.
Track hours accurately: Even for a short shift, it’s your legal duty to ensure every minute worked is paid.
Deduct and remit payroll taxes: If you pay without doing this, it’s not only risky—it’s illegal.
Manually calculating this each time you bring on a temp is a headache. Automating these steps with a system like HR for Health’s payroll solution helps reduce errors and ensures your process holds up under scrutiny.
Final Thoughts: Compliance Doesn’t Take a Day Off
Temps may only work with you for a short time—but your responsibilities as an employer start the moment they walk through the door. One simple mistake—like skipping a paystub or misclassifying the worker—can trigger audits, fines, or even lawsuits.
That’s why it pays to use a payroll system designed specifically for healthcare practices like yours.
That’s why HR for Health’s new payroll solution is such a game changer for dental practices. Built in partnership with Gusto Embedded, it combines Gusto’s trusted payroll engine with HR for Health’s healthcare-specific compliance expertise. That means you get automatic tax filings, W-2 generation, direct deposit, paystub delivery, and built-in protections for labor law compliance—all in one seamless platform.
Whether you’re paying a temp for one shift or managing a team of 20, this system is designed to eliminate risk, reduce workload, and ensure every employee is paid correctly, every time.
Learn more about HR for Health’s new payroll solution here.
Because in the world of dental staffing, even short-term hires deserve long-term compliance—and now, you have the tools to make that easy.
Back to Holli: “I hope you found the post useful! Even with a great partner to keep your practice, compliant, hiring temps can still be a hassle and a challenge. This post here give an additional solution.”
Smiles,
Holli Perez
DirectDental
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