Plenty of tasks need to be done now, but your company can’t afford to bring in any more full-time staffers. Thank god for independent contractors … right?
Careful. While there are obvious advantages to enlisting independent contractors (usually no health insurance or other benefit payments), not doing it correctly will outweigh any short-term savings — by a lot.
If you’re not 100% positive an independent contractor shouldn’t actually be classified as an employee, it pays to do some extra research. Especially if you’re a small biz.
The number of smaller businesses depending on independent contractors has increased at a steady clip over the past 10 months. In fact, almost four (3.7) out of every 100 people small businesses bring in are ICs.
And with an increasing independent contractor presence in small firms, the IRS is bound to be watching. With that in mind, if you’re thinking about enlisting some extra IC help, make sure to cross your T’s and dot your I’s by having all proper documentation in place.