When deciding whether to hire someone directly or to offer someone contractor employment, there is more to consider than you might realize. You may think that it’s simply your decision—do you want this person to be a regular “W-2” employee or do you want this person to be a “1099” contractor? The reality is, it’s not all your choice. The IRS strongly regulates whether someone is a contractor or an employee. Here’s what you need to know.
Control Freaks Shouldn’t Hire Contractors
Is it important to you that your contractor works set hours in your office and uses specific tools that you provide? Well, then, you want an employee, not a contractor employee. A contractor needs the freedom to work how they choose. They generally need to provide their own equipment and set their own schedules. You can specify the work that needs to be done, but you don’t get to choose how they do it. If the very idea of an employee with such freedom makes you nervous, remember, a contractor isn’t an employee. That’s the whole point.
To keep reading, click here: Hiring a Contractor vs Hiring an Employee