Most Popular Posts

How to Set Up a 401k and Avoid Higher Fees There is a disconnect between small businesses and 401(k) plans. According to a recent study by SurePayroll, more than 70 percent of small firms don’t offer them.

How the New Overtime Rules Could Impact Your Business Recently, the U.S. Department of Labor (DOL) issued their Final Overtime Rule that will become effective on December 1, 2016. ​

What’s a Verified Twitter Account and How do I Get One? What do Kim Kardashian, Barack Obama, Martha Stewart, and William Shatner all have in common? They’ve got verified Twitter accounts. ​

6 Inexpensive Ways to Reduce Waste for Your Small Business We all know it’s possible to use waste policies to cut company spending. 3M, for instance, was famously able to save around $500 million just by implementing a more aggressive waste reduction strategy.

3 Ways Every Business Can Help Save the Planet and Benefit Too Every business can see financial benefits from being environmentally conscious, thanks to both savings in your operating costs and consumer goodwill. When customers see that a company is sustainable or otherwise committed to ethical choices, 66% of them are willing to pay more for their products and services. ​

All Fields Required

Should I Hire an Independent Contractor or Employee?

Posted On
September 16
By
Chris Bibey
As a small business owner, it is important to know when you need additional workers and when you can hold off on hiring. This can be a slippery slope, especially when you begin to consider all your options.

At some point, you may be faced with an important question: is it best to hire an independent contractor or employee? Since there are pros and cons of both, you never w
ant to jump the gun and make a rash decision.

When to Hire a Contractor

Although every small business is in a unique position, there are times when it makes most sense to hire a contractor. Consider the following:

  • You don’t have employees on staff to handle specific tasks
  • Uncertain demand at the present time (you don’t know how long you will require the person’s services)
  • The job task requires a specialized skill

When to Hire an Employee

As tempting as it may be to hire contractors time after time, you must consider the fact that you can only control such workers to a certain degree. Here are some circumstances in which it makes more sense to hire an employee:

  • Ability to assign specific tasks at any time, without worrying that you are “crossing the line” that could get you into hot water with the IRS
  • Assurance that the person is going to work exclusively for your company
  • Opportunity to provide targeted training related to the position

It can be a challenge to decide if hiring a contractor or employee is best for your company. If you have any questions regarding how this will impact your tax situation, review this information from the IRS while also working closely with an experienced accountant or attorney.

Some companies only hire employees. Some only hire contractors. And some have a mix of both. What is going to work best for your organization?


Leave a comment