Contractor or Employee: Who Do You Need for Your Job Opening?

Contractor or Employee: Who Do You Need for Your Job Opening?

You have a position that needs to be filled — or more accurately, a task that needs to be handled on a regular basis by a qualified and trustworthy person. In order to keep your company running, someone needs to stand at this post and fulfill these duties whenever and however they need to be done. So should you hire a full or part-time employee for this role? Or should you engage with an independent contractor? (Keep in mind that these are not your only options; you may be able to outsource the task to a vendor service, hire an intern, or even enlist the help of a volunteer, but if these aren’t on the table, you’ll have two chose between the first two: employment or contingency staffing.) Start by answering these questions.

Are you ready to carefully track and fully compensate the person for their hours worked?

The laws in your state will play a strong role in your answer to this question. If you hire a regular employee, you’ll need to abide by minimum wage and overtime rules, and you’ll need to pay your employee in full and without delays. But these rules also apply to contract workers, and many employers don’t realize this. Don’t wait for a lawsuit to learn how your state handles contingency employment relationships. If you think contract workers come with looser restrictions or more employer-friendly loopholes, check twice.

Do you understand your reporting obligations?

Even if you don’t withhold social security or Medicare funds from your paychecks, you’ll still need to report all earnings to the IRS for contingency workers. You’ll also need to report all wages and hours on pay stubs and other documents.

What will your insurance cover?

Some insurance policies cover contingency workers and some don’t. Some cover remote workers who are hurt as a result of their jobs, and some do not. It’s okay to cut overhead costs by not maintaining or having employees report to a brick and mortar “workplace”, but make sure these reduced costs are worth what you gain in return.

Are you prepared to maintain records?

Contingency workers should still have complete files containing, for example: Resumes, hiring agreements, signed workplace policies, statements of work, performance records, I9s, and employee handbooks.

What level of commitment do you need?

An at-will agreement means either party can leave at any time for any reason, so simply hiring an employee full-time won’t guarantee their retention. Contractors can work under any kind of agreement that suits the needs of the worker and the job, but the terms will need to be clarified.

Work with a Top Management Recruiter in Scottsdale

For more on how to make this important decision, contact the staffing experts at the ACCENT Hiring Group.

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