The Benefits of Working with an Independent Contractor

An independent contractor is not an employee. It is a person you go to when you need a specific service at a specific rate. Unlike hiring an employee, a business does have less control over some elements of this contact. However, there are some ideal benefits to hiring these professionals as well. You will need to do the research necessary to determine who to work with and to ensure the quality is there, much like you would if you were to hire someone for a job. Yet, there are a few differences you need to know about before you agree to move forward.

What Is the Difference?

The biggest difference in an independent contractor and an individual employed by the business is that you are not hiring them. Even if you have steady, long-term work for the professional, you are not hiring them. The following are some of the biggest differences in this. As you can see, many of these differences provide benefits to you, too.

-You do not have to pay the taxes and Social Security fees as you would for an employee. This cuts down on the amount of money you have to pay to the individual or to the government for using the services.

-You do not have to pay for workers compensation or other insurance for the individual. This is another way that you can save money.

-You do not have to set up or maintain any type of retirement account or benefits, either. Even if you decide to pay a bonus, you do not have to do this with any regularity. It saves you money.

-You get all of the benefits of making decisions about the project, but you do not control the time a person works. For example, you determine how the project is done and set the terms ahead of time. Then, you get to make the call on if the project is done properly. Even without standing over the individual and monitoring hours clocked, you still get the benefit of making decisions.

-You can be hands off if things do not work out the way you want them to. There is no promise for work that is long term.

It is still important to have a contract with an independent contractor. Not having one could put you at risk for problems down the road. You also want to ensure that these professionals are available to you with the skills and experience you need. Do not assume you know who they are or what they can offer before you agree to work with them for a long-term or larger project.