Hiring
Independent Contractors
As many small business
owners continue to seek the most efficient methods to operate their businesses,
procuring the services of independent contractors instead of hiring employees
has become increasingly popular.
There advantages to using
the services of an independent contractor, however, there are also
disadvantages.
Advantages
Monetary
Savings: While independent contractors are paid more per hour
than employees, employers usually end up paying more to hire employees. When
you hire an employee, there are a number of expenses which must be paid such
as: social security and Medicare taxes, state unemployment compensation, and
workers’ compensation insurance.
Flexibility
in Staffing: Hiring an independent contractor allows
for a al carte production. Once the specified project is finished, the need for
the independent contractor ends unless the employer decides to enter into a
contract for another specified project.
Disadvantages
Less
Control: Independent contractors enjoy more autonomy than
employees. Therefore, the employer has less control over the work flow of the
independent contractor.
Termination
Depends on Agreement: The terms related to termination of
an independent contractor will rely on the agreement. Unlike at-will employees,
an employer does not possess the unrestricted right to terminate an independent
contractor.
Liability
for Injuries: Independent contractors are not covered by
workers’ compensation, which means that if they are injured on the job, they
may be able to recover directly from the employer.
MyLegalEdge offers a
variety of independent contractor agreements to fit your needs. For more
information, e-mail us at [email protected]
or send us a message directly through the website.
