Employees or Independent Contractors, Which Is Better?
When you start a business, you need to make careful consideration if you should hire employees or independent contractors? Taking advantage of consulting services that are available to you helps make this decision a lot easier.
To help you out, Macro Resource, Inc. is going to talk about both options in a two-part article, so be sure to stay tuned. Right now, we will be discussing hiring employees and the conditions that need to be met before you post a job opportunity online.
You should hire an employee if:
- The work needs to be done under your supervision
- If this is a long-term need, such as creating products and shipping them
- If you want to control the hours of work and the materials used by the worker
- This work is essential to your business. For example, your HR personnel is essential, while MD Bookkeepers/Accounting Services may not be.
Besides these, you also need to consider if you can afford to hire an employee and how many employees you can have. Business consulting in Maryland can help you map out your finances to see how you’re doing money-wise.
You also need to think about the laws and regulations you need to comply with if you are to hire employees. You will have to comply with tax requirements, as well as pay half of your employee’s FICA taxes. There are a lot of unfamiliar words, but they can be explained through our MD tax consulting.
We will now take up the topic of hiring independent contractors and what to consider before doing so.
Something our consulting firm in Baltimore, Maryland, always tells our clients is to take a look at what your business needs and what you can afford. Yes, you can hire employees and independent contractors at the same time, but what type of projects and responsibilities would justify hiring a contractor? Here are some of the conditions:
- If the work is not central to your business. For example, an MD Tax Preparer is outside the scope of your aquarium construction business.
- If the work can be done by a professional who doesn’t need much supervision.
- If the work is a short-term project and can be completed in a specific time. Like company rebranding, etc.
- If the worker has professional expertise. A good example is investing in consulting services.
The decision to hire a worker as an employee or independent contractor greatly depends on your needs and capabilities. They also have different laws and jurisdictions that you will have to comply with. You also need to be aware that a worker can still be considered an employee by the IRS unless you can prove otherwise. So, be sure to look into our MD taxpayer representation before Internal Revenue Services (IRS).
You may be feeling confused, but that’s why our consulting firm in Baltimore, Maryland, exists. We will be happy to answer all business-related questions you may have. Just dial 443-980-7151.