Businesses, both large and small, have embraced contract workers. Contract, or 1099 workers, offer specialized and expensive skills that many small businesses cannot afford.
What jobs are best filled by contract workers?
Contract workers are a good fit when the service they perform is ancillary to the daily task set of a small company. For example, a small business manufacturing and selling dog biscuits to local pet stores has little need (or budget) for a full-time writer or graphic artist. Good marketing, however, suggests that the company’s website and marketing materials must be well written and pleasing to the eye. Enter the contract worker. Small companies hiring contract workers benefit from the highly specialized skills possessed by these workers without the large outlay of cash necessary to bring such folks on-board permanently.
How difficult is it to hire and document contract workers?
It is not difficult to hire or pay contract workers. The first and most important step is to be sure that the worker you hire qualifies as a 1099 worker–an independent contractor. The Internal Revenue Service’s website has an easy to understand page that helps business owners determine the status of their workers and how to ensure compliance to IRS regulations. If a company pays more than $600 to a contract worker, it must file a Form 1099-MISC. Just be sure that the work agreement or contract your 1099 employee signs do not conflict with IRS definitions regarding the definition of an independent contractor.
How do I best utilize my contract worker?
Before hiring an independent contractor, be sure you have a well defined set of tasks or projects ready and waiting. In the above stated scenario, the dog biscuit company would likely ask for a year’s worth of written marketing materials and website updates, to be completed within 6 weeks. With posts and updates in hand, a business owner need only update the website.
Contract workers fill an important niche in a small company. They are the ideal partner in the search for ways to trim employment costs while maintaining quality, customer satisfaction, and revenue.