Should Business Owners Consider Independent Contractors
Independent contractors have numerous advantages for business owners. Prior consideration over what needs will be met by a potential contractor and how much involvement a business owner will have in the work process will establish if either an independent contractor or employee should fill a specific role. If the work requires little supervision and a solid contract is in place regarding copyrights, project duration, and other expectations, business owners can benefit from hiring independent contractors.
Cost Savings
Independent contractors do not generally receive insurance benefits, paid time off or other similar items required for employees. The company may not need to set up an office area, provide computers, or pay software license fees for contractors. Finally, Unemployment and Workers Compensation Insurance, Social Security, and taxes are not required for independent contractors and provide additional savings.
Time Savings
Managing a staff of employees requires a substantial investment in time. Annual reviews, scheduling, team meetings, and continuing education are just a few time-intensive tasks required for employees.
Simple Coverage for Workload Fluctuation
Hiring independent contractors is a quick way to ramp up for new business or reduce staff when cyclical dry spells occur. It can also be useful if you need a new website, new software platform training, or other projects with a lifespan.
Conclusion
There are some definite advantages to hiring a contractor over a full-time employee if the need matches the criteria. Remember to determine if your project has a lifespan and decide how involved your company needs to be in the process. If a project can be left to the contractor once business needs are communicated, and there will be no long-term benefit to hiring staff with skills needed to complete the project, then hiring a contractor may be the best route.
For more answers to your business needs contact Trihawk Capital.
Additional resources:
IRS: Reporting Payments to Independent Contractors
Nolo: Pros and Cons of Hiring Independent Contractors
Forbes: Employees or Independent Contractors – Categorizing Workers Properly
CNet: Your Next Hire Employee or Independent Contractor?
