Independent contractors are freelancers or self-employed persons who handle work on their own. They do not have to approach any for rules and regulations. They do not have the same rules like that of an employee. However, the cost to both employee and contractor varies depending on various factors.
Firstly, the contractor has the basic right to follow what he wants unlike an employee. Secondly, he does not have to undergo any kind of training provided by the owner. The services rendered are subject to choice and demands. He is also not required to be personally present everyday to render services. His services or work cannot necessarily increase the productivity and nothing should be assured of. You as a contractor can hire sub contractors and assistants and need to bear their expenses too. More...
What Is An Independent Contractor ?
Independent contractors, or self-employed people, are employees that provide services at their own consent. You are again required to pay taxes, Medicare taxes, unemployment tax, and social security tax to your employee. If you already are a contractor, then you have the right to hire subcontractors, but do remember to check out whether they turn to become your employees then.
You also need to understand the relationship between you as an independent contractor and your employee. The person hired by you can also be an employee, statutory employee, independent contractor and statutory non-employee. Depending on whether he or she falls in any of these categories you can then take the next step. There is a certain amount of control and independence levied which can be either behavioral, relationship and financial. More...
Health Benefits For Independent Contractor
Most people tend to become freelancers or independent contractors because you would love to be your own boss. There are many companies that still do not understand the difference between employees and contractors. Some try to exploit the relationship and take advantage of the law.
Mostly, people do not know that companies are not liable to pay taxes including Social Security, Worker’s compensation and unemployment insurance to contractors. Employers also do not need to pay sick leave, health insurance and stock options to contractors like the case of employees. Hence, most companies cheat these contractors by declining them their rights. They are contractors just for namesake but are treated just like employees. More...