Growing your business has become a huge challenge. Unless you are in certain sectors of the economy that are overburdened with demand, thinking about growing your business may not seem realistic. Even though it may seem impossible now, there may be many opportunities for you to expand your business. While many people see the large unemployment numbers as a crisis (which it is), there is another side to that coin.
There are a lot of amazing, talented people who now find themselves without a job. If they have children, they may not be in a position to return to work full-time but could use some income. Could your business use some talented independent contractors to help? Especially for small businesses, I’m a big fan of using virtual assistants or independent contractors when possible. It allows for more flexibility, helps to control your initial overhead and can be a huge help growing your business.
What Is An Independent Contractor?
An independent contractor is someone you hire to perform a specific task for your business. Rather than open-ended work, they are often limited in the time they will work or projects/tasks they will work on. The independent contractor often has their own equipment to complete your project or task.
Some examples of independent contractors:
- Writing social media posts
- Designing your website
- Writing grant proposals or other business proposals
- Writing reports for your clients
What Is An Independent Contractor Agreement?
If you’ve decided to hire an independent contractor, it’s a good idea to have an agreement. The agreement will be between you and the independent contractor. It should be in the form of a written contract. The goal of the agreement is to outline the scope of the work that the contractor will be performing for you.
One of the most important parts of the agreement is that it will specifically say that the contractor is not an employee for legal and tax purposes. Without this provision, your agreement may not protect you from the IRS claiming that the person is actually an employee of your business.
The agreement should also address:
- The services to be performed
- How much the contractor will be paid
- When the work starts and ends
- How the working relationship ends
- Benefits (if any) that the contractor receives
- Protection of your intellectual property
There are other provisions that you should consider for your agreement. These are some of the more common ones.
What If I Don’t Have An Independent Contractor Agreement?
If you don’t have an independent contractor agreement, the IRS may treat the person you are working with as an employee. You could then be responsible for unemployment benefits, overtime pay and taxes. And you could also be legally responsible if the person is injured on the job and have other legal responsibilities that you did not intend.
You May Also Like
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- Independent Contractor Agreements: Now Is A Great Time To Use Them…
- Employee v. Independent Contractor: Which Should I Hire?
If you or your business are considering using an independent contractor, give me a call and we can discuss how to tailor an independent contractor agreement for you or your company – (877) AMAYERS.