Hiring Independent Contractors
There advantages to using the services of an independent contractor, however, there are also disadvantages.
Monetary Savings: While independent contractors are paid more per hour than employees, employers usually end up paying more to hire employees. When you hire an employee, there are a number of expenses which must be paid such as: social security and Medicare taxes, state unemployment compensation, and workers’ compensation insurance.
Flexibility in Staffing: Hiring an independent contractor allows for a al carte production. Once the specified project is finished, the need for the independent contractor ends unless the employer decides to enter into a contract for another specified project.
Less Control: Independent contractors enjoy more autonomy than employees. Therefore, the employer has less control over the work flow of the independent contractor.
Termination Depends on Agreement: The terms related to termination of an independent contractor will rely on the agreement. Unlike at-will employees, an employer does not possess the unrestricted right to terminate an independent contractor.
Liability for Injuries: Independent contractors are not covered by workers’ compensation, which means that if they are injured on the job, they may be able to recover directly from the employer.