{"id":2624,"date":"2020-02-17T10:00:25","date_gmt":"2020-02-17T16:00:25","guid":{"rendered":"https:\/\/www.headwaycapital.com\/blog\/?p=2624"},"modified":"2020-10-05T15:34:40","modified_gmt":"2020-10-05T20:34:40","slug":"hire-contractors-or-employees","status":"publish","type":"post","link":"https:\/\/www.headwaycapital.com\/blog\/hire-contractors-or-employees\/","title":{"rendered":"Should You Hire Contractors or Employees?"},"content":{"rendered":"<p>With the rise of the gig economy, a certain type of occupation surged: <a href=\"https:\/\/www.headwaycapital.com\/blog\/how-to-hire-contractors-for-your-small-business\/\">the contractor<\/a>. While contractors, or self-employed workers, are seen to have more freedom, they aren\u2019t actually covered under the same laws and regulations as employees.<\/p>\n<p>Contractual personnel can help you save money, but it\u2019s important not to misclassify workers to <em>cut down on costs alone<\/em>. If budget is the only issue, you\u2019ll still have options to help in times of <a href=\"https:\/\/www.businessbacker.com\/blog\/increase-cash-flow-now\/\">low cash flow<\/a>, like <a href=\"https:\/\/www.headwaycapital.com\/revolving-credit\" target=\"_blank\" rel=\"noopener noreferrer\">revolving credit<\/a> that allows you to use only the amount you need.<\/p>\n<p>Before we can suggest general tips and guidelines, the IRS detailed certain <a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/independent-contractor-self-employed-or-employee\" target=\"_blank\" rel=\"noopener noreferrer\">factors to consider<\/a>:<\/p>\n<ul>\n<li>Whether there is an intention to continue a working relationship, if there is a written contract and if there are benefits for the worker, like a <strong>retirement <\/strong>or <strong>insurance plan<\/strong>.<\/li>\n<li>Whether a company has the <em>right to control the work and manner in which the work is completed<\/em>.<\/li>\n<li>Whether aspects of a worker\u2019s job are controlled by the payer, including whether or not the worker provides <strong>their own supplies<\/strong> and <strong>how they\u2019re paid.<\/strong><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-2628\" src=\"\/blog\/wp-content\/uploads\/sites\/5\/2020\/02\/20-00052_05_SMB_HC-Should-You-Hire-Contractors-or-Full-Time-Staff-1c01.png\" alt=\"Should You Hire Contractors or Full-Time Staff Infographic\" width=\"1200\" height=\"4122\" srcset=\"https:\/\/www.headwaycapital.com\/blog\/wp-content\/uploads\/sites\/5\/2020\/02\/20-00052_05_SMB_HC-Should-You-Hire-Contractors-or-Full-Time-Staff-1c01.png 1200w, https:\/\/www.headwaycapital.com\/blog\/wp-content\/uploads\/sites\/5\/2020\/02\/20-00052_05_SMB_HC-Should-You-Hire-Contractors-or-Full-Time-Staff-1c01-87x300.png 87w, https:\/\/www.headwaycapital.com\/blog\/wp-content\/uploads\/sites\/5\/2020\/02\/20-00052_05_SMB_HC-Should-You-Hire-Contractors-or-Full-Time-Staff-1c01-298x1024.png 298w, https:\/\/www.headwaycapital.com\/blog\/wp-content\/uploads\/sites\/5\/2020\/02\/20-00052_05_SMB_HC-Should-You-Hire-Contractors-or-Full-Time-Staff-1c01-768x2638.png 768w, https:\/\/www.headwaycapital.com\/blog\/wp-content\/uploads\/sites\/5\/2020\/02\/20-00052_05_SMB_HC-Should-You-Hire-Contractors-or-Full-Time-Staff-1c01-447x1536.png 447w, https:\/\/www.headwaycapital.com\/blog\/wp-content\/uploads\/sites\/5\/2020\/02\/20-00052_05_SMB_HC-Should-You-Hire-Contractors-or-Full-Time-Staff-1c01-596x2048.png 596w, https:\/\/www.headwaycapital.com\/blog\/wp-content\/uploads\/sites\/5\/2020\/02\/20-00052_05_SMB_HC-Should-You-Hire-Contractors-or-Full-Time-Staff-1c01-150x515.png 150w, https:\/\/www.headwaycapital.com\/blog\/wp-content\/uploads\/sites\/5\/2020\/02\/20-00052_05_SMB_HC-Should-You-Hire-Contractors-or-Full-Time-Staff-1c01-640x2198.png 640w, https:\/\/www.headwaycapital.com\/blog\/wp-content\/uploads\/sites\/5\/2020\/02\/20-00052_05_SMB_HC-Should-You-Hire-Contractors-or-Full-Time-Staff-1c01-750x2576.png 750w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>References<\/p>\n<p><sup>1<\/sup>Weltman, B. (2019). <a href=\"https:\/\/www.sba.gov\/blog\/how-much-does-employee-cost-you\" target=\"_blank\" rel=\"noopener noreferrer\">How Much Does an Employee Cost You?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With the rise of the gig economy, a certain type of occupation surged: the contractor. While contractors, or self-employed workers, &#8230;<\/p>\n","protected":false},"author":16,"featured_media":2625,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[611,609],"tags":[531,55,96,110,532,151,242,157,260],"class_list":["post-2624","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-optimizing-your-small-business","category-small-business-finance","tag-contractors","tag-employees","tag-infographic","tag-management","tag-self-employed","tag-small-business","tag-small-business-management","tag-small-business-tips","tag-staff"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Should You Hire Contractors or Employees? - Headway Capital Blog<\/title>\n<meta name=\"description\" content=\"Need help for your small business and don&#039;t know whether an employee or contractor is right for your situation? 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