Is It Smart to Hire Independent Contractors?

Is It Smart to Hire Independent Contractors?
A group of independent contractors working together.

When hiring a contractor you should be aware of your business needs. This can a solution to your current situation. If you have short term projects that do not require someone working full-time, then hiring an independent contractor can be the best thing. On the other hand, if you are not sure what you can expect from an independent contractor when it comes to legal ways, it’s time to consult an employment lawyer.

Is an independent contractor a good idea?

You might think it is easier to hire a contractor than actually hire a full-time employee. The first one does not require a commitment that is beyond your contract. The hiring is fast, and there are no extra payments such as health insurance, worker’s compensation, and taxes. Once the project is done, your relation with the contractor ends, and you don’t have to worry about anything. A contractor can be hired again and as many times as you need them (as long as their skills and services meet your business needs). In fact, you don’t even have to seek local contractors, you can find the right person on the other side of the world.

With a full-time employee, everything is the opposite. However, it does not mean it is worse; you get loyalty and a trustworthy person who won’t just leave once they have completed their task.

What about a full-time employee?

Some business owners believe that it is a smart idea to invest in the extra costs for a full-time employee. The main reason for that is that they do not have to worry about the agreement with the employment laws and can avoid misclassification of contractors under the labor standards of their country.

Also, it is a great idea to have a talented worker on your team for a long time. This way you are creating a continuum in your successful work which of course is beneficial for your business.

Sure, there are administrative steps you need to take if you intend to hire a full-time employee, but in the long run, it will surely bring good results.


A few things you need to know before hiring an independent contractor

You will have the final decision in the end, but this list might help you to make up your mind.

  • Check if your business needs to report tax on payments for independent contractors.
  • Create your contractor agreement with the legal requirements of your state and the state where your contractor lives.
  • Find the best payment way (and currency) to pay your independent contractor.
  • If your independent contractor lives in a different country than yours, make sure you learn how their country interprets the terms “employee” and “contractor”. You should be careful not to turn an independent creator into an employee if that is not your intention.
  • You need to set a time range (is this collaboration short or long-term).
  • Make sure you supervise their work.
  • If this independent contractor is essential to your business. Think twice where you are investing your time, money and energy.

When is the right time to hire an independent contractor

There are many factors that will guide you towards making the decision of hiring an independent contractor. Here are a few:

  • Your business needs a professional worker who does not need your constant supervision.
  • The job you need to be done is not the most important for your business; for instance, you perhaps need someone who will clean your offices (it can be done by an independent contractor who won’t affect your business anyhow).
  • You have a short-term project that should be done within a certain period of time; you don’t necessarily need a full-time employee to finish this task.

There are many pros if you decide to hire an independent contractor. Not every business seeks extra expenses that come with a full-time employee. But, you need to be aware that your contractor works independently. This means that once you assign the duty to your contractor and give them the deadline, you simply cannot tell them how to finish the work or when to work. These people will most likely have other clients as well and they are free to set their working hours. So, having the final work presented to you on the deadline should be your only concern.

Before finalizing your decision, it would be smart to consult with an employment lawyer. Our team is experienced and dedicated and works for the entire territory of Connecticut. Call and schedule your consultation today.

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