To Hire Or To Contract?
At times while running your business, there will be a need for a person and their skills that are special to one specific area, but the funds might not allow for you to hire someone on as an employee. There’s also the chance that the funds are there, but a full workload isn’t. Do you hire someone part-time? Or work with an independent contractor?
First, what are independent contractors? These are people you hire for their specific set of skills, and they work under a contract that you create. Contractor positions range from creative like social media writers, graphic designers, and photographers to seasonal positions like lawn care, snow removal, florists, and landscapers.
One would typically hire a contract worker when the need for a full-time or part-time employee isn’t there, or the funds restrict it. Reaching out to a contractor ensures you’ll be saving money while also getting the most for your dollar. Hiring an independent contractor is also a form of outsourcing.
An independent contractor completes work on their own time with less instruction than an employee would. They have more flexibility in how they do the work. Contractors typically aren’t trained, and they use their own resources to get work done. A contractor doesn’t come into work every day like an employee. Occasionally they’ll have to work on-site to complete their work, but not regularly.
What are the benefits of working with a contractor? You’re working with an expert in their field, and saving money doing it. They know what they’re doing and how to get it done. Plus, you’re paying them for only the work you give them, not the same as what you would an employee (hourly/salary, benefits).
If you work with a contractor, you’ll give them a W-9 form to fill out, and they’ll receive a 1099 form at the end of each year for their taxes. Taxes are not taken out of their paycheck. If you hired someone to be an employee, you would put them on your payroll, and taxes would be taken out.
When looking at the needs of your company and what your bank account will allow, it’s important to consider all of your options. Rather than hiring someone, you could work with an independent contractor - or vice versa. Weighing the pros and cons in every decision is always wise!