So, you started your own small business and now you feel like you can’t do everything on your own. Maybe you just want to find someone to help when you have overflow or many you want to have a steady assistant. No matter what kind of help you need for your small business there are some things you need to keep in mind.
There is a difference between an actual employee and a contract worker, and you need to know the differences of employing them. This will help you find the right help for your business, and maybe save money while you’re at it.
Get All The Paperwork In Order
You are going to have to have your new help sign paperwork. A contract or freelance working is going to need to sign paperwork just as much as an actual employee is going to need to. If you’re doing something interesting in your business you may also want to have your worker sign a non-disclosure agreement.
You’re possibly going to need some paperwork in order to even have an employee or a freelance worker. You may want to check locally on what the laws are.
Make Sure You’re Licensed To Have Employees
You may find that you need to have some sort of licensing in order to hire an actual employee, but you may not need it if you’re having a freelancer or contract worker work for you. You’ll also need to know what you need to do when it comes tax time. If you’re paying someone to do work for you need to let the IRS know you’re paying someone, since that is money coming from your overhead.
Know Minimum Wage Laws
You also need to know about the wage laws. The minimum wage laws do not count when it comes to hiring freelance or contract workers, which can both be a benefit and a curse. If you hire an actual employee, though, you will have to pay them at least the minimum wage.
You do want to know the going rate for different types of work so that you aren’t undercutting people that could do some good work for your business.
Contract (1099) Worker Or Employee?
Determining whether you want an actual employee or a contract worker can be a big decision. Even if you’re a sole proprietor, you can hire an employee; you just need to know the laws. You can do some research online or talk to someone in your local court system.
If you want someone that is going to stick with you for a long period of time, and you don’t mind paying them minimum wage (or can afford to pay them that), you can hire someone on as an employee. However, if you only need someone for a short amount of time or only when you have overflow, you should consider a freelancer.