A query I’m requested typically is – I need assistance however I do not know if I want an unbiased contractor or an worker?
It’s a troublesome query and never one simply answered with out digging into your online business. I wish to provide you with some meals for thought to get you considering on the fitting path.
First, the rationale you care is as a result of should you deal with somebody as an unbiased contractor nonetheless the IRS or DOL sees them as an worker you’ll subjected to fines, penalties and again taxes. OUCH! Consider these questions earlier than you resolve.
Is the work venture based mostly? If you’ve got a venture or “to do” merchandise that you may hand off and are solely fearful in regards to the consequence and never the way it’s carried out – get a contractor.
Does the individual have to be in your workplace to finish the work at sure occasions? If you might be telling somebody when and the place they’ll work – you want an worker.
Do you care when an individual does the work? If you might be solely involved with the work being carried out regardless whether it is at 8am or 8pm so long as it’s carried out by a sure date – get a contractor.
Is it OK in the event that they produce other purchasers? If they’ll be just right for you and others on the identical time – get a contractor.
My favourite useful resource for that is by the IRS. This PDF publication does a terrific job of getting you considering in the fitting path. You can discover it by looking the IRS web site.
What has been your expertise with worker vs. unbiased contractor?