How to Keep Track of Your Contract Workers in a Post-COVID, Hybrid World

The workforce is changing—and fast.
Since COVID-19, more businesses are leaning on contract workers, freelancers, and independent specialists to fill critical roles. This flexible model offers agility, but it also brings unique challenges:
How do you keep track of your contract workers? How do you stay compliant? And how do you support their well-being in a post-pandemic landscape?

Let’s break it down.

Why Tracking Contract Workers Matters

Contract workers may not be on your payroll in the traditional sense, but they’re still a vital part of your team.
Here’s why keeping accurate records and processes is critical:

• Compliance: Misclassifying contractors as employees can lead to IRS fines, back taxes, and legal headaches.
• Project Management: Without clear tracking, deadlines can slip, invoices can get lost, and productivity suffers.
• Budget Control: You need visibility into how much you’re spending on contracted talent to manage your bottom line.

How to Keep Track of Your Contract Workers Effectively

Here are practical ways to stay organized and compliant:

1. Centralize Contractor Records

• Keep contracts, tax forms (like W-9s), invoices, and project scopes in one secure system.
• Tools like HR platforms, project management software, or contractor management systems can streamline this.

2. Use Time-Tracking or Deliverable-Based Tools

• For hourly contractors, time-tracking apps like Toggl or Harvest keep things transparent.
• For project-based contractors, platforms like Asana, Trello, or Monday.com can help track deliverables and progress.

3. Classify Workers Correctly

• Contractors should control how and when they work.
• Regularly audit roles to ensure you’re not accidentally creating employee-like conditions, which can trigger reclassification risks.

4. Pay on Schedule

• Timely, accurate payments build trust and improve retention.
• Automated systems or integrated payroll platforms make contractor payments seamless.

How COVID-19 Changed the Workforce

COVID-19 accelerated a shift that’s here to stay:

• 36% of the U.S. workforce now freelances in some capacity. (Upwork, 2023)
• The number of businesses using contract workers increased by 22% between 2020 and 2023. (Statista, 2024)

Contract work is no longer a side option—it’s a central part of modern business models.

The Mental Health Impact and the Return to the Office

COVID-19 didn’t just change where people work—it changed how they feel about work.

Mental Health Statistics:

• 76% of workers report at least one symptom of a mental health condition post-COVID. (Mind Share Partners, 2023)
• Contract workers, freelancers, and remote employees often report higher levels of isolation and burnout.

The Push to Return to Office:

• As of 2024, almost 90% of companies require employees to return to the office at least part-time. (Forbes, 2024)
• However, forcing returns without flexibility can lead to turnover—even among contract workers who value autonomy.

How to Support Contract Workers in This New Era

Even though contract workers aren’t full-time staff, they still need:

• Clear expectations and deadlines
• Open communication channels
• Access to project tools and updates
• Respect for their time, flexibility, and mental health

Supporting their well-being isn’t just good ethics—it’s good business.
A supported contractor is more engaged, more productive, and more likely to work with you again.

Keeping track of contract workers isn’t just about timesheets—it’s about building strong, reliable partnerships. In today’s flexible, post-COVID world, clear tracking and real support matter more than ever.

At Guardian Payroll, we make it simple to manage your contractors, stay compliant, and keep your people paid on time—with a human-first approach you can count on.

Let’s work together. Connect with us today.