Are you a business owner debating whether you should hire an independent contractor? Most companies hire employees to get tasks done, but there are some drawbacks to hiring an employee. There are more expenses to cover with an employee, such as insurance and paying out salaries even if business is lackluster.
This is why a lot of businesses are hiring an independent contractor to get the job done. Still not sure if you should go that route? Keep scrolling because, in this article, we are going over 5 benefits of independent contractor jobs.
What is an Independent Contractor?
Independent contractors are businesses that are hired by other businesses to use their services. For example, an apartment complex might hire a cleaning business as an independent contractor to clean the apartment complex.
The biggest distinction is that contractors are not employees of the company they are working for and are not on the payroll. They operate as their own business doing work for another company or individual.
Reasons Why You Should Hire a Contractor
Hiring an independent contractor instead of hiring someone on to your full-time staff has many advantages. Let’s go over the benefits.
1. Save Money With Independent Contractor Jobs
When you hire an independent contractor, you’ll be saving money compared to an employee. You won’t need to provide office space, equipment, or employee benefits. These expenses alone can increase payroll by 10-30 percent. You won’t need to pay a contractor for mandatory hours worked like you would a full-time employee.
A contractor is only paid for the hour’s work, or when work is completed.
2. Increased Flexibility
You’ll have access to increased flexibility when using a contractor. You have the freedom to call on an independent contractor on an as-needed basis. This is especially nice if you have a business that has fluctuating workloads.
3. No Need For Training
When you hire an employee, you’ll need to spend time training this person. Training will also be an added expense that you’ll need to cover.
An independent contractor already has the necessary experience and training to get your specific task done.
4. Reduction in Liability
With an employee, you are responsible for anything that the employee does. If an employee is at a job site and breaks something that belongs to the client, you’ll be liable for any expenses.
Independent contractor couriers must provide their own insurance, licenses, or permits to operate. That’s one less thing you’ll have to worry about. This reduces your exposure to lawsuits.
5. Less Paperwork
The only paperwork you’ll need to set with an independent contractor is a contractual agreement, payment for services, and a W-9 tax document. If you hire an employee, you’ll need to set up an employee profile, make paystubs for IRS submission, file multiple tax documents, and go through employee handbooks, and more.
The easier route would be hiring an independent contractor, so you focus more on the task instead of delaying the job to get through paperwork first. The best independent contractor jobs are waiting for your business.
Should I Hire an Employee or an Independent Contractor?
This question depends on what you feel more comfortable with. If you have long-term ongoing tasks that require many hours, go with hiring an employee. If your business has more short term tasks or you don’t want to spend too much on overhead, go with an independent contractor. Don’t delay because the best independent contractor jobs are waiting for your business.
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