Tuesday, February 19, 2013

The Grey Area (1099 versus employee)





Many employers think they can contract out all the work that needs to be done in their organization.  I mean who wouldn’t want to use a contractor? You don’t have to worry about paying taxes, workman’s comp or any other fees associated with an employee.  

So, many employers go ahead and hire everyone as contractors without looking at what the person is doing for them or how they are working.  This can lead to a myriad of problems for a small business owner.   Jobs have to be put through a series of questions to determine if that position can be held by a contractor. 

When you are ready to make those hires, don’t take the easy (sounding) way and hire everyone as a contractor.  Get advice from a Human Resources professional or go online and look up the regulations associated with hiring and become familiar with what an employee looks like compared to a contractor.  

Don’t get into a situation where you have to pay money to the federal and state governments because you didn’t follow the regulations when hiring.  Be aware of the amount of control exercised by you as the employer over the work being done when figuring out if you have an employee or a contractor.  Looking at this before you begin hiring could save you hours of headache and legal troubles.  




Suzanne Cormier
Executive Director
BizWorks (Small Business Incubator)
Follow Suzanne Cormier on Facebook and
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