Growing a business can be tough. The good news is in today’s gig economy there are plenty of people who offer their contractor services to help. Before you agree to hire someone short-term, there are a few things you should consider.
Determine whether the individual you’re hiring should be treated as an employee or an independent contractor.
Independent contractors are unique because the payer has the right to control only the result of the work. With hired employees the company has more control over the hours worked and how work is performed. However, employees tend to be more expensive as the employer pays for Social Security and Medicare, unemployment taxes, and spend time handling administrative burdens. Independent contractors, on the other hand, pay their own taxes.
The benefits of hiring an independent contractor are no doubt appealing. If you decide this is the best option for your business, there are a few requirements to follow in order to remain tax compliant.
Once you decide to hire a contractor, applying the above suggestions can ensure you experience a hassle-free process.
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