In the last article, Macro Resource, Inc. talked about what you should consider if you are opting to hire employees. We will now take up the topic of hiring independent contractors and what to consider before doing so.
Something our consulting firm in Parkville, Maryland, always tells our clients is to take a look at what your business needs and what you can afford. Yes, you can hire employees and independent contractors at the same time, but what type of projects and responsibilities would justify hiring a contractor? Here are some of the conditions:
- If the work is not central to your business. For example, an MD Tax Preparer is outside the scope of your aquarium construction business.
- If the work can be done by a professional who doesn’t need much supervision.
- If the work is a short-term project and can be completed in a specific time period. Like company rebranding, etc.
- If the worker has professional expertise. A good example is investing in consulting services.
The decision to hire a worker as an employee or independent contractor greatly depends on your needs and capabilities. They also have different laws and jurisdictions that you will have to comply with. You also need to be aware that a worker can still be considered as an employee by the IRS unless you can prove otherwise. So, be sure to look into our MD taxpayer representation before Internal Revenue Services (IRS).