Things To Consider When Hiring a Temporary Worker

Things To Consider When Hiring a Temporary Worker

Business.

Does your business get busier in the fall and are you considering hiring temporary staff to help with the workload?  If so, keep in mind there are some things to consider.

The first is whether they can be a 1099 contractor or if they need to be hired as an employee.  For more information on this, see my blog post here which gives information on how to determine which classification to use based on IRS guidelines.

The second thing to consider are all the costs associated with a regular employee that must be paid for the temporary worker.  What are these expenses? Continue reading “Things To Consider When Hiring a Temporary Worker”

Is Your Worker an Employee or Freelance Contractor?

Is Your Worker an Employee or Freelance Contractor?

office-625893_1280Many businesses have looked at the cost of hiring an employee versus a freelance worker and have decided to classify them as a 1099 worker to save money.  Unless the worker actually qualifies under IRS and state guidelines, I don’t recommend you do this.

The IRS began auditing businesses looking for misclassifications, and the penalties and interest you’ll have to pay will be much higher than any cost savings you will gain by classifying the worker as an outside contractor.

The guidelines the IRS uses when determining if a worker is an employee or contractor fall into three categories: behavioral control, financial control, and relationship of the parties.  Let’s look at these in more detail. Continue reading “Is Your Worker an Employee or Freelance Contractor?”