Staff-hire or Contract

Employees or Contractors

Do you have more work than you can handle?  Are you thinking of bringing someone on to help out?  Should you hire them as an employee, or make them a contractor?   Here are some points to consider:

To help determine the degree of control and/or independence and thus the proper classification of an individual – Behavioral, Financial and Relational.

07ef48e0-0a09-486f-8e34-5ee15bf185b0Behaviorally,

–       if the details of the work performed are the key to evaluation, then the individual should probably be made an employee,

–        if the end result alone is the key to evaluation, then the individual should probably be considered a contractor.

–        if the employer controls the schedule and resources, then the individual should probably be made an employee,

–        if there is no set schedule and the resources are owned by the individual, then the individual should probably be considered a contractor.

Financially, the greater the potential for the individual to lose money as a result of the work performed (for non-reimbursed expenses such as tools), the greater the likelihood that they should be considered a contractor.In 

In relation, if you hire the individual with the expectation that the relationship will continue indefinitely (rather than for a specific project or period), the individual should probably be considered an employee.

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stanley ng

Stanley Ng a writer of accloudant.com, from lifestyle entrepreneur, small business, cloud technology, and everything in between. Stanley loves to travel both for work and leisure, an eye opener for him to feel and meet each of his associates on how they work and live.

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