In Show 088 – 10 Ways to Distinguish between an Employee and Contractor originally broadcast on Facebook Live on Monday 7 May 2018 we explore this interesting topic.
Today on Fast Fix Monday we discuss the difference between independent contractors and employees. This is part of the Phase 4: Bringing on new employees. It’s an exciting time for a growing business but you have to get the status of your workers right or your risk running afoul of regulators. There are 10 ways to tell the difference between a contractor and an employees.
- An independent contractor has their own business. They don’t work exclusively for you.
- Contractors are experts in their industry. They are guns for hire that are brought in for their specific expertise.
- Contractors openly market their services. They are free to work for others.
- Contractors are brought in for a specific project for a set period of time.
- Contractors submit their own invoices.
- Contractors determine when they work and the hours they work.
- Contractors determine how they work. They can determine how they will perform their service.
- Contractors are responsible for their own taxes. An employee will have taxes deducted from their paychecks.
- Contractors are not eligible for company benefits like sick leave or vacation leave
- Contractors can subcontract or delegate work to others.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.