Getting Help: Hiring an Independent Contractors

How to get help when you need it -- and make sure it's legal.

Small businesses need help on occasion, and you may prefer to contract out the work instead of doing it yourself or hiring an employee. The main advantage of hiring an independent contractor is you only pay for the services you need, without the ongoing obligations of having an employee.

It is possible to hire out a wide range of services that will make your project easier and more successful. People have businesses providing a wide range of services, from doing bookkeeping to secretarial services.

Using contractors can help you control costs. Contractors usually provide their own facilities, so you won’t need to find office space and equipment for them. Contractors can provide you with the flexibility to find the best services for a specific task.

Independent contractors are not employees and you do not have to withhold taxes when you hire one. But someone does have to pay taxes and the price you pay for contracted services will include money for taxes somewhere. Remember that if an estimate or quoted price seems high.

You can’t hire someone to do whatever you want and just say they are a contractor. There are specific rules and regulations that the IRS follows to determine if someone is an employee or contractor. Be familiar with these rules.

The main disadvantage of hiring a contractor instead of an employee is that you are not the only person they work for. Your project, while of utmost importance to you, may not be the top priority for your contractor. They may not be knowledgeable about your specific needs or always be available when you need them.

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