An independent contractor refers to a corporation, person or business whose main duty is providing goods or services to a different entity under terms that a contract specify. A worker can decide to be either fully employed or an autonomous contractor. Each option has several benefits. Your business is free to hire a contractor or employees. The contractor is a freelancer, thus not under the same rules and regulations as the other employees.
Nevertheless, the following are solid reasons for your business to hire a contractor or freelancer:
To Save Money
In reference to Nolo legal encyclopedia, hiring an independent consultant saves you money. Your business doesn't have to hire an independent contractor 365 days a year. It only needs the services of the freelancer for a few days, weeks or months. Consequently, your business doesn't have too many overheads to worry about. Hiring an employee to work for you means paying salaries and other benefits such as medical, insurance, travel and holiday among others. The freelancer can work from his home, thus saving you money spent on equipment and office space.
Improve Staffing Flexibility
An independent contractor provides the level of staffing flexibility that your business can't find elsewhere. You can hire and let the outworker go at any time. The contractor is great for a business whose workload keeps fluctuating all the time. Therefore, your business hires the contractor only for a specific task, before letting him/her go when the work is over. This saves you from the legal troubles, expenses and trauma associated with hiring and firing.
Reduced Exposure to Lawsuits
According to Forbes, you have less likelihood of lawsuits. Federal and state laws give employees certain unalienable rights. Therefore, if your employees feel that you have infringed on these rights, they may take you to court. Your business doesn't want the bad publicity that comes with being a defendant in court. It's better to avoid such situations by hiring freelancing professionals instead of hiring employees to work for your business fulltime. Spending less time in court gives you more time to focus on the business.
Nonetheless, you need to understand what the law says about independent contractors. It/'s worth noting that the state and federal agents as well as agencies prefer listing all workers as employees rather than independent contractors. This is because of financial reasons. More employees translate into more money collected by the government in the form of taxes. Freelancing doesn't provide the state and federal governments with the level of taxes they get from employees.
For these reasons, let your business enjoy more benefits by hiring an independent contractor.