“Hiring the best is your most important task.” Steve Jobs We believe there are many benefits to hiring Independent Contractors in comparison to Employees. The ultimate decision always rests with the purpose of the hire and the long-term goals of the business. Financial Benefits Business Owners should always weigh carefully the pros and cons of hiring an Independent Contractor (IC) versus an Employee depending on the specific requirements and type of project. The length of time, skill requirements and labor law rules will often be the determining factor to make that decision. Payroll costs including payroll taxes as well as vacation, retirement, and insurance benefits are not required to be paid to Independent Contractors. These types of costs can increase your total payroll and benefit expense amounts by twenty to fifty percent or more per year. Staffing Flexibility Hiring an IC allows you to hire people when you need them the most. You can increase workers when it is very busy and not hire them when you do not need them. Independent Contractors work with a large amount of autonomy. They can decide how the work will be done as long as it satisfies the owner’s requirements. The general rule according to the Internal Revenue Service is “an individual is an Independent Contractor if the payer has the right to control or direct only the result of the work and not what work will be done.” Higher Levels of Efficiency Quickly Independent Contractors normally yield profits faster because they are highly skilled in certain areas. They are required to have their own permits and licenses so they do not need to be trained like most employees. In this way, ICs can be very efficient and effective in their work right from the beginning. Below is a quick summary of the different employee and Independent Contractor attributes:
Source: Findlaw.com How We Can Help You Pacific Crest Group (PCG) provides professional services that keep your business focused on your critical objectives. We provide strategic Accounting and Human Resource (HR) services created specifically to help you meet your goals. Through exemplary customer service, clearly defined policies and procedures as well as a forward-looking perspective, we provide the outsourced solutions your business needs to grow. A PCG professional is happy to meet with you to discuss solutions for your unique requirements designed to maximize all of your business opportunities. |