If you run a small business or startup company, you have likely considered hiring contractors to help take on some of your essential tasks. Unlike full-time and part-time employees, contractors are paid on an hourly basis as needed. This means, you are able to stop and start services as you wish, which can be crucial for operating a lean business and saving money. Not only that, but contractors don’t require the same benefits and protections that permanent full-time hires do, making them an affordable and quick way to delegate projects. In this article, we will explore everything you need to know about hiring and paying contractors.
Contractors Can Be Used as Needed
One of the best things about hiring contractors is that you are able to use their services as needed. This means that you do not have to commit to paying them for simply logging on, as you would a full-time hire. Instead, you can reach out to contractors to complete ad hoc projects and tasks to save your business time and money.
You Can Customize Payment
As an employer, you are able to customize payment when working with contractors. Unlike using a typical HRIS and running bi-weekly payroll, contractors can be paid either hourly or per project. This means that you can decide how much in total you want to pay for the successful completion of a project or assign an hourly rate for longer-term assignments, which in turn can help you bulk up on your savings and not overspend on talent.
You Can Let Contractors Go at Any Time
If at any time you are unsatisfied with the work delivered by a contractor, you can let them go and search for new talent at any time. You won’t have to worry about severance and other termination packages as you would with full-time hires, making it easy to switch the organization of your team at a moment’s notice. There are many factors that can contribute to the need for eliminating contractors from your team. Examples include market challenges, project completion, poor culture fit, and more.
Short-Term Contractors are Especially Convenient
If you are hiring short-term help to tie up some loose ends associated with a project, or simply to help jumpstart research in a particular area, this scenario is especially convenient for your business. If contractors make less than $600 in a calendar year, they will not have to worry about tax forms or filing for their work. This makes getting a few extra hands on deck even for a short amount of time especially easy.
We hope this article helped you learn a bit more about hiring and paying contractors. This employment solution can help you run a lean and efficient business, while also giving freelancers a unique experience! If you are planning on hiring contractors but want to learn more before doing so, contact Bottom Line Consulting today!