Your organization is taking the market by storm and the workload has gotten larger than that which you can handle on your own. You’ve gotten positive feedback on the implementation of your business plan and even gotten a small business grant for women owned businesses from your local Community Foundation. Now it’s time to add staff. But do you hire an employee or look for an independent contractor?
Independent contractors and employees are not the same, and it’s really imperative that you comprehend the major differences. Comprehending these specific differences can help you know what your first hiring move should be and influence how you withhold an assortment of taxes and steer clear of expensive legal penalties.
What’s the difference?
An Independent Contractor:
- Functions under a company name
- Has his/her own staff
- Keeps a different company checking account
- Markets their organization’s products and services
- Bills for work completed
- Has got more than a single buyer
- Provides own equipment as well as sets own work schedule
- Keeps organization information
- Does chores determined or controlled by other people
- Is provided training for work to be done
- Works for only one employer
A lot of small enterprises rely on independent contractors with regard to their staffing needs. There are lots of advantages to making use of contractors instead of using the services of employees:
- Savings in personnel expenses
- Lowered legal liability
- Flexibleness in acquiring and firing
Why Should It Make a difference?
Mistakes in classification of a worker as an independent contractor could have a number of costly legal implications.
Should your independent contractor is found to meet the legal meaning of a staff member, you may be forced to:
- Compensate them for earnings you should have compensated them within the Fair Labor Standards Act, together with overtime and minimum wage
- Make payments towards back taxes and fees and penalties for the purpose of state and federal taxes, Social Security, Medicare and unemployment
- Cover any existing unpaid injured personnel workers’ compensation benefits
- Provide employee benefits, together with medical care insurance, a retirement plan, and so forth
Visit the IRS Independent Contractor or Employee self-help guide to read about the taxation implications of either circumstance, get a hold of and fill out a form to have the Internal revenue service officially verify any workers’ status, and locate relevant information.
There isn’t a particular assessment for identifying if someone is definitely an independent contractor or an employee using the Fair Labor Standards Act. Having said that, the subsequent guidelines ought to be taken into account:
The particular degree which the help rendered are a fundamental element of the particular principal’s small business
The permanence of the business relationship
The amount of the assumed contractor’s investment in facilities and devices
The makeup and level of control by the business owner
The alleged contractor’s possibilities to make money
The degree of initiative, judgment, or foresight in open market competition with others that is required for the success of the claimed independent contractor
The degree of independent enterprise organization and operation
Whether or not an individual is an independent contractor or an employee usually is determined by how much control used by way of company over the work being done. Study Equal Employment Opportunity Laws – Who’s Covered? for additional info on the way to determine whether one is an independent contractor or an employee, and also which are covered according to federal laws.
Getting the right people to support your small business can be critical to your success. Knowing as much as you can about employees before they come on board is vital. The following list includes the kinds of information that companies commonly consult as part of a pre-employment check, and the laws governing what constitute a legitimate investigation.
Credit Reports Under the Fair Credit Reporting Act (FCRA), businesses should get a worker's authorization prior to seeking an employee's credit report. If you choose not to promote or employ somebody based upon information in the credit report, you have to offer a copy of the report and let the candidate or employee understand his or her right to challenge the report under the FCRA. Go to the FTC s Bureau of Customer Security s website to learn more. Criminal Records To what level a personal company may consider an applicant's criminal history in making hiring choices varies from state to state. Due to the fact that of this variation, you ought to seek advice from a legal representative or do more legal research on the laws of your state before checking out whether or not a candidate has a criminal past. For Federal Bureau of Examination (FBI) checks, consult these resources:
- FBI Solutions for Businesses
- FBI Wrongdoer History Checks for Employment and Licensing
- FBI Checks on Staff members of Banks and Associated Entities
These laws cover everything from protecting against discrimination as well as harassment inside the workplace, office poster demands, wage and hour regulations and workers’ compensation rules.
The U.S. Department of Labor manages federal government employment and labor rules; however, individual states also have their own specific legal guidelines. In order to help you understand and abide by these laws, reference the following small enterprise guides and sources.
- Find out which Government Employment Laws Apply to Your Company – This online resource from the Department of Labor – the “FirstStep Work Laws Advisor” – will assist you to determine which regulations pertain to you and how you can abide by.
- State Work Laws and regulations – Each individual state has its particular laws that you must comply. This site contains links to your state labor office.
- Browse Laws and regulations by Classification – Acquire easy-to-understand information and facts concerning various federal government employment laws and regulations utilizing this “eLaws” on the web tool from the Department of Labor.
Find Information by Subject Gain access to the most frequently asked search engine terms and also subjects from the Department of Labor.
- Employment Law Guide – This extensive guide describes significant work regulations that impact companies and is designed for those needing “hands-on” information to develop salary, benefit, safety and health, and nondiscrimination procedures.
- 10 Steps to Selecting your Very first Staff member – These 10 basic techniques will guide you through what you must do once you hire your initial employee.
If your company is growing, however you are having a hard time keeping up, possibly it’s time to pay add staff.
The 8 steps below can assist you start the hiring process and guarantee you are compliant with crucial federal and state policies.
Step 1. Obtain an Employer Identification Number (EIN).
Before employing your first employee, you have to get a Employer Identification Number (EIN) from the U.S. Internal Revenue Service. The EIN is often described as an Employer Tax ID or as Form SS-4. The EIN is essential for reporting taxes and other documents to the IRS. In addition, the EIN is necessary when reporting details about your staff members to state firms. You can obtain an EIN online or call the Internal Revenue Service at 1-800-829-4933.
Step 2. Establish Records for Withholding Taxes.
According to the Internal Revenue Service, you have to keep on records of employment taxes for at least four years. Maintaining good records can also help you keep track of the development of your company, prepare financial statements, determine sources of receipts, keep an eye on deductible expenses, prepare your income tax return, and support items reported on income tax return.
Below are three types of withholding taxes you require for your company:
- Federal Income Tax Withholding – Every employee must provide a company with a signed withholding exemption certification (Form W-4) on or prior to the date of employment. The company needs to then submit Form W-4 to the Internal Revenue Service.
- Federal Wage and Tax Statement Every year, companies must report to the federal government salaries paid and taxes kept for each worker. This report is submitted needing Form Wage, tax and w-2 statement. Employers should finish a W-2 form for each employee who they pay a wage, wage or other payment.Employers should send Copy A of W-2 forms to the Social Security Administration by the last day of February to report salaries and taxes of your employees for the previous calendar year. In addition, employers should send out copies of W-2 kinds to their staff members by Jan. 31 of the year following the reporting period. Check out SSA.gov/ employer to learn more.
- State Taxes – Depending upon the state where your employees are located, you may be had to withhold state income taxes. Check out the state and local tax page to learn more.
Step 3. Worker Eligibility Verification.
Federal law needs companies to validate a staff member’s eligibility to work in the United States. Within three days of hire, employers should complete Form I-9, work eligibility verification, which needs employers to analyze documents to verify the employee’s citizenship or eligibility to work in the U.S. Employers can only request documentation defined on the I-9 form.
Companies do not have to send the I-9 form with the federal government however are required to keep them on file for 3 years after the date of hire or one year after the date of the worker’s termination, whichever is later on.
Employers can utilize details provided from the Form I-9 to digitally validate the employment eligibility of freshly minted staff members by registering with E-Verify.
Step 4. Register with Your State’s New Hire Reporting Program.
All employers are required to report newly employed and re-hired employees to a state directory site within 20 days of their hire or rehire date. Check out the New Employees Reporting Requirements page to get more information and discover links to your state’s New Hire Reporting System.
Step 5. Obtain Employees’ Compensation Insurance.
All companies with staff members are required to provide employees’ compensation insurance coverage through an office provider, on a self-insured basis or through their state s Workers’ Compensation Insurance program.
Step 6. Post Required Notices.
Companies are required to show particular posters in the work environment that inform employees of their rights and company responsibilities under labor laws. See the Workplace Posters page for specific federal and state posters you’ll need for your business.
Step 7. Submit Your Taxes.
New and existing employers should seek advice from the Internal Revenue Service Employer’s Tax Guide to understand all their federal tax filing requirements.
Step 8. Get Organized and Keep on Yourself Informed.
Being a good employer doesn’t stop with satisfying your various tax and reporting responsibilities. Maintaining a fair and healthy workplace, providing advantages and keeping on employees notified about your business’s policies are key to your commercial’ success. Right here are some additional steps you need to take after you’ve employed your first employee:.
In addition to requirements for keeping on payroll records of your workers for tax functions, particular federal employment laws also require you to keep records about your workers.
It can be hard to find a good job. Do you enjoy working with others, or are you a lone wolf? You will want to ask yourself these questions prior to beginning a job. Read on to find out what else you need to know.
Even if you’re already seeking employment, it’s important to do well at your current job still. Any slacking off can really hurt your reputation and reference. Your potential employers could hear about it as well. In order to succeed at anything in life, it’s vital that you are always doing your best, no matter how much you hate something.
Make sure you highlight the qualities you have that they are looking for in the cover letter of your resume. If they are looking for leadership skills, then you should try to include specific instances where you have exhibited leadership skills. Pay close attention to the wording of the employment advertisement and try to match the qualifications sought with those you offer.
Make sure that you go to your work early. Delays can pop up when least expected, so make sure to allow ample time. Proving that you can show up to work on time every day will have a positive impact on your employment.
When you’re filling out applications, use a form that will make the task easier. You’ll probably be asked to provide obscure dates and other information you won’t remember. It is good practice to write everything down and keep the information handy. This makes it easier for you when you fill out your applications.
Keep in mind a resume is just one thing you need to impress with. Make sure that your resume is completely up-to-date. That said, there’s more to the process than that. Potential employers will also base their decision on the way you present yourself and on how the interview goes. It is crucial that you let your strengths shine through.
Matching your job with your personality is tough sometimes. Either assess yourself honestly or use a skills assessment test. Also, use the tips and information in this article to find a job that fits your personality well.
A job truly is what makes you or breaks you. Finding a job, the right job, is something that’s important to everyone, as it is where they spend a lot of their week. Sometimes you’re around people you work with more than your family. That’s why you must take job hunting seriously. Take the advice herein, and do it well.
Limit the amount of disagreements that you have with your coworkers. You should always try your best to be easy to get along with. Building a reputation for being easy to work with can lead to better opportunities.
Try not to socialize too often at work with friends. Keeping relationships with your colleagues at a professional level is best. Personal relationships can get in the way of job performance in extreme ways. Instead, prevent being friends with them and keep your relationship on a professional level so that your position isn’t put at risk.
The proper state of mind is important when job searching. Keep your mind on getting a job, and don’t accept failure. Unemployment benefits only get you so far, so make sure to set deadlines. You need to set goals ahead of time that will help you stay focused on how many hours per day that you will job search, and the number of applications you will send out daily.
Your resume is important, but it is not the only aspect of getting a job. It must be updated to remain current and fresh. The resume is just one piece of the puzzle. Employers are seeking confident and positive individuals to fill their positions. Always focus on your strengths, and play to them in the interview.
If you are required to complete an application for employment by a potential employer, you need to fill it out fully for them. Even though you may have all of this documented on your resume, if you take time with the application, your attention to detail and instructions will impress your potential employer.
You should not lie during job interviews. Most of the information you provide during the interview will be looked into before you are officially offered a position. Even if he or she doesn’t, you’ll end up in trouble if you claim to have skills, knowledge or experience that you don’t have. Instead, just focus on enhancing your true strengths and don’t inflate anything just to impress your interviewer.
When job hunting, you need to apply to the right jobs so that you’ll be happy in the long run. The proper information is what you need. Utilize the advice provided here, and you can land an excellent job that you love going to.
Finding a good job is not easy, especially in a bad economy. There is a lot you may need to learn and you may have a lot of competition. This is why it’s always best to use some solid tips and tricks to help you ace an interview.
If you can’t find work, you should rethink your job search strategies. Many companies simply aren’t hiring, but never give up. Take the time to go to areas you may not have gone to otherwise, but make sure you can afford to make it there if you do get a job.
Being prepared is very important if you wish to get a job. Be sure that your resume is current and that it details your qualifications. Does it include your education, experience and certifications? You should include both online and offline education and current reference information.
Always keep upgrading your abilities. The work world is always changing, just like technical things do, and you must show that you can keep up. If you are to have a sustainable edge over other candidates, you must be fully aware of significant changes that may affect your chosen industry. Classes are a great way to fine tune your abilities. You increase your worth to any business when you learn new information.
As an employer looking to hire a new worker, it can pay to be patient. If you’ve fired or laid off someone or your company needs additional workers, you need to treat the situation in the same way and only hire someone that is a proper fit for the open position. Hiring too quickly can lead to disappointment and difficulty in remedying the problem.
Keep in mind that companies value making money above all else. When getting ready for an interview, think of ways to showcase your profit-generating talents. Companies desire to have more than just an honest and rational person.
You can get the right job with the help of an excellent resume. Make sure your resume is organized for quick consumption. Your resume should have details about your work experience, education, strengths and skills. Be sure to include contact information and any volunteer work.
It’s not easy to find a job in these difficult times. Not only are you being scrutinized, but there are many other candidates that you have to compete against. This article will ensure that those hiring will want you and no one else.
This article is perfect for anyone struggling with unemployment. If the concept of finding a job has you lost, then this article can serve as a map. Read here to learn all you need to know about finding a job.
LinkedIn is a great place to find information about employment. The Q&A section of a company website is a great place to help you show off your expertise. You will also be able to use this place to see if others have anything to say about their experience and ideas where they work.
Dress with professional attire when you are going to a business. Even if the workplace is a casual one, you still need a nice appearance to impress your interviewer.
You need to always focus on gaining new skills. The business world is forever in a state of flux, and new technologies necessitate new skill sets. Keep up with your industry to remain employable. Go to conferences or take a few classes. When you are more than simply aware of your surroundings, you are presenting yourself as someone who is willing to look for solutions in new and exciting ways.
Make a document that will help you fill out applications quickly. It is often difficult to remember specific contact numbers or dates that you may need to provide on your application. It makes sense to keep this information in one simple document. This can make it a whole lot easier to fill out applications.
Many jobs go by different titles, so search by the requirements, not job title. Spend time online conducting research about available job titles, focusing on the similarities. This type of approach provides a wider selection of jobs you can apply for.
Your personal phone should be answered in a professional manner. People may be surprised at this greeting, but they will also be impressed.
If you have the knowledge, getting a good job is pretty easy. Now that you’re able to see how easy it can be, you can finally start looking for employment that’s long term. Do your best on seeking a job!
It’s not very pleasing usually when you’re looking for work, whether you were aware of becoming unemployed or not. Look at it as an opportunity to better your position in life by finding the perfect employment. The article below can help you do just that.
You have to do well with your current job, even when looking for a different one. This does not give you the option to slack off at your current job. That reputation could be passed on to your future employers. In order to find the job of your dreams, you have to continue to work as hard as possible at everything you do.
While you may be applying for a job at a factory, dress as the factory manager would. Show you are a professional with quality and sleek attire.
Make a form that will assist you when you fill out applications. You’ll find yourself having to supply dates and information that may not be fresh in your mind. You should create a cheat seat that contains all of this information. This will make completing job applications simpler.
Check out career fairs locally. Career fairs will help you figure out the kind of job you want. Also, you should be able to build a better contact list of people who can assist you in getting a job.
Look for all different types of jobs that you qualify for. Research other jobs online, and determine which ones are right for you. This will give you a much wider range of jobs to apply for.
Don’t put all your hopes in one job. Even if you believe you will certainly be hired, nothing is official until the employer calls you and actually tells you that you’ve been hired. Continue to search, and keep all options open. You increase your odds of finding a job by applying at as many jobs as possible.
Make sure your resume references have up to date contact information. It never looks good when a prospective employer finds they have been given information. Verify that your references all have the number you remember and still live in the same place.
Before you land the career of your dreams, you must get your foot in the door by landing that first position. How nice would be to get up every morning and get ready for a job you love? Focus, stay determined and go get that dream job!
Everyone who has done a job search has become discouraged at times. It’s not hard to understand this feeling. It’s hard going to different locations asking them if they wish to hire you. There are a few things you can do to make this process a little easier. By following these tips, you will be able to find a job.
You must always make sure to try to keep things professional and conflict-free with your fellow coworkers. It is essential that you are known as someone who gets along well with others, and especially with those that are known to be difficult. Building a reputation for being easy to work with can lead to better opportunities.
Plan to arrive at work early. If you experience delays, you should still arrive on time. Proving that you can show up to work on time every day will have a positive impact on your employment.
Career fairs are very beneficial to get you a job in the future. They can be informative and help you see the type of position that you’re looking for. You can also gain some great contacts that can aide you in getting the right job.
Use an employment or recruitment agency to help land a good job. They are free and they do most of the work when it comes to finding you a job. They’ll identify your skills and tailor your job search to areas where you are well qualified. Keep in constant contact with the agency so that your resume does not get buried in their system.
Try to network in the niche you’re in. This ensures you have people to rely on when you need help. Go to seminars, classes, meetings and join organizations in the field. Use networking in order to become a leader in the field you choose.
When you start a new job, it is better to tell your boss more than needed rather than leaving out anything. A lot of problems in the workplace come about thanks to too little communication, which can make your boss very leery. Instead, try to communicate even more than you normally would. Supervisors appreciate this quality because it allows you to seek valuable feedback, which leads to improved performance.
Make sure that you fill out all applications comprehensively. Even if the information requested already appears on the resume you have handed them, it still will make an impression if you go the extra step of filling it in again by hand.
If you’re struggling to find a job, you are definitely not alone. Therefore, the advice that you read can be extremely useful. Your perspective will also be changed. Incorporate the tips presented here into your every day job search to find certain success.
We all need to have a job. What can you do if you are unemployed or are not earning enough money? If you want a new position or a larger income, the tips that follow are for you.
LinkedIn provides many wonderful resources when you are looking for work. Their Q&A section is a great place to display your qualifications and expertise. Use this section to ask others questions about ideas, experience, and jobs in specific roles and industries.
Don’t get into conflicts with coworkers. You should always try your best to be easy to get along with. By having a good reputation, you will be more likely to receive raises and promotions than other coworkers who stir up drama.
Your cover letter should reference the specific qualifications from the job listing. Make sure you give specific examples of leadership if that is what the employer is after. Re-read it carefully to make sure you describe yourself in a way that makes you stand out.
Have the right mindset. Try to find your job without focusing on failure. Don’t be dependent on an unemployment check, or you could end up too comfortable with it and be stuck when it runs out. You need to set goals ahead of time that will help you stay focused on how many hours per day that you will job search, and the number of applications you will send out daily.
The roles and responsibilities of some job titles vary greatly from one company to the next. Avoid focusing on a single title, as this may cause you to miss out on a similar opportunity. Find out online what job titles are like the ones you would like to have. This will help ensure you have the widest range of possible jobs.
Now that you have read this article, you should have a better understanding of what to do when looking for a job. Whether it’s your first time looking for a job, or you’ve done this before, these tips can help you out. Keep it with you as you pursue your dream job.
Everyone is very aware of the fact this is one of the toughest economic times that people have ever seen in their lifetime. Just to stay afloat during this time, you need to learn whatever you can about employment. These tips will help you out when searching for a job.
If you cannot find a job, you may want to think about changing your job searching strategy. Though many places are not hiring, do not become discouraged. Widen your search radius, however, ensure you can handle and afford the commute if you get the job.
Use LinkedIn as a resource. The Questions and Answers section of the site is an excellent place to demonstrate your knowledge and expertise in your chosen field. Also, you can communicate with other users and make vital contacts.
Don’t limit yourself to one title since many jobs may have multiple titles. Research other jobs online, and determine which ones are right for you. This will allow you to apply for more jobs.
Include social media addresses in your resume. Social media is widely used in business, and showing you know what you’re doing can make the right impression.
Always answer to phone calls in a polite manner and make sure you say your name right away. Your friends and relations may be surprised, but your potential employers are sure to be impressed.
Rather than using your home number on applications, give a cell phone number. This allows you to take calls while on your way to job interviews, when you’re out shopping or any other time. You can carry your cellphone to the bathroom, garden or anywhere, and you won’t miss an important call.
Make sure that you sign up for the employer’s health plan. Premiums are deducted before taxes, and therefore less expensive than individual plans. Married couples should compare plan offerings, so that they choose the better plan.
When you learn that you have lost your job, apply for unemployment immediately. You can’t wait until the severance ends or your last work day. The sooner you’re able to sign up for this, the better chance you’ll have at being approved quickly.
As we mentioned earlier, the job market is very challenging right now. No doubt about it, finding work in these times will not be an easy process. By studying the tips and advice contained in this article and applying them to your individual situation you can improve the chances that you will find employment success.
A bad economy can make it hard to find or keep a job. If you are suddenly without a job, you are sure to be frightened. It is fortunate that this article has valuable advice about making your job search successful. Use these tips to get yourself back into the workforce.
Tweak your strategy for job searching if you are not having any success. Many firms and agencies may simply not be in a position to hire, but you must persevere. Spread your search out more to locations you may not previously wanted to go to for work. Make sure that you can cover the cost of the commute, should you land a job there.
Return to school. Sometimes, looking for a job means improving your skill set. The more skills that you possess, the better your chances are of landing a job. The Internet has several options for virtually anyone.
You should probably figure out what the average pay is in the field you’re trying to get employed in so that you don’t end up making less than you should. Often, people will request lower wages to avoid getting rejected for asking too much. Although there is some truth to this, asking for too low of a salary can make you appear desperate.
When you are searching for a new job, being properly prepared can make all the difference. An up-to-date resume and qualifications list is needed. You need to list everything you’re good at, your education level and any qualifications you may have. This should include education, job experience and professional references who can vouch for you.
Don’t get into conflicts with coworkers. Being a team player is a big requirement for most employers, so it is important that you get along with others. If you build a teamwork type of reputation, then you will be the one that gets the promotion.
Regardless of the doubts you may have, keep on trying. Just keep renewing your resume and looking for jobs. Use any tool you can in order to get back in the workforce. Your commitment is especially important as you put this great advice into practice.
It’s not very pleasing usually when you’re looking for work, whether you were aware of becoming unemployed or not. However, this is an opportunity to get a job that you find much more fulfilling than your old one. The information here will help you make that your reality.
Don’t think that you only should take one kind of job, because there are jobs out there that have a few different titles. Research online to find similar names for the job you are seeking. This will give you a much wider range of jobs to apply for.
When going to a job interview it is important to dress for success. Wear appropriate clothing and make sure your hair, nails and make-up are attractively maintained. Potential employers will judge you by how you look, so look good.
Don’t rely on any one job. Until you have a job, do not stop looking. Stay persistent and apply to various jobs. The more places you send your resume to increases your chance of finding a job.
Answer your phone professionally with, “Good morning/afternoon, this is (your name) speaking.” Potential employers will like your attitude and see you in a good light.
If money is an important issue when looking for a job, try obtaining a position outside your field to pay your bills while you’re looking for longer term employment. Get a part-time job to make ends meet before you find employment in your sector.
Do not lie at any time in your job interview. When your answers are fact-checked, you may be in for trouble. While they may not check your facts, you can find yourself struggling in the position if you don’t have the necessary skills. Be honest, talk about who you are and what is great about you.
Evaluate your skills. If you think there are particular skills you need for a specific job, you may want to take classes. If you don’t have much money, there is no need to get an advanced degree. Your chances of a better job improve with the information you have and the classes you take. For instance, if you’re interested in bookkeeping that requires QuickBooks, try taking a QuickBooks class.
Use the night prior to prepare for a tough interview. Collect your paperwork and have it ready. Everything has to run smoothly when you rise in the morning of your interview.
Avoid making negative and rude comments about your old bosses on the Internet, especially through Facebook, Twitter and other social media. Employers thinking about a new employee might check out their social media presence. Abstaining entirely from posting explicit and potentially offensive content is your best bet, more so than simply setting it to ‘Friends Only’.
You’re now ready to look for and get your dream job. It would feel so good to get the right job to wake up to in the morning. Prepare yourself for a few tough battles and go grab the position that you have been dreaming of.