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.
Having a good job is a very important matter, but it isn’t a simple one. If you want to have success when searching for employment, you really need to learn everything that you can about employment. Here you will find proven job search tips that will help you on your quest.
You have to do well with your current job, even when looking for a different one. You cannot afford a bad reputation due to goofing off. The people you are interviewing with may become aware of your activities as well. You have to try your hardest to succeed.
LinkedIn is a great place to find information about employment. Other professionals can see your profile and see how you answered certain questions. This may give you the jump-start you need. This area can also be used to ask questions of others regarding jobs and industries.
Don’t stop improving your skill set. Technology and business are always changing so it’s best to stay abreast of everything. Make yourself a great hire by keeping tabs on how things are changing. Take as many seminars and classes as you can. This makes you more of an asset to your prospective employers.
Some employers provide extra perks in order to attract a better class of workers. For example, some of the best companies provide on site restaurants, saunas, gyms and so on. Employees want these types of jobs, and it brings in the best and brightest for them. This will give you a greater pool of potential candidates to select from.
Keep yourself in a good mindset. Focus on the job you want, and don’t take no for an answer. Don’t rely on unemployment or you may feel too comfortable in this position. Instead, you must have solid goals set on the amount of applications you have out there.
Keep in mind that the resume represents only one small part of the big picture. It does have to be up-to-date, of course. A resume alone won’t get you hired. You have to be confident and prove to the company you can make them money. How can you do this? Figure it out before the interview.
Being employed is a very serious matter. To succeed in life you must find proper employment. Becoming educated and applying several tips about gaining employment will assist you in gaining the employment that you seek.
While most people need work to survive, not many people are sure of how to get work. There are many different factors that play into landing a job you want. Continue reading to learn how to get hired for your dream job.
You should still work hard at your current job even if you are seeking something else. You could damage your professional reputation by slacking off. You never know when word might get to potential employers. You have to consistently work hard if you would like to succeed.
Return to school. At times, discovering the job you want requires that you expand your skills. Take time to learn all that you can for a better job. Lots of self-guided study options exist that can be built around your schedule.
It is important to be prepared with questions of your own for your interview. At the conclusion of almost any job interview, the interviewer will ask you if you have any questions. Ask about the company culture, what kind of work will be required and anything else you can think of.
Go to many career fairs while you are job searching. They can be really instructional and give you lots of intel on what types of jobs are out there. You can also meet people here that can refer you to a job.
You need to be appropriately dressed for a job interview. Be sure to choose appropriate attire and pay close attention to the details like your nails and hair. Potential employers will form an immediate judgment based on your appearance, so do all you can to make a favorable impression.
Do not count on one job when you are trying to find employment. Getting a job is not easy so make sure you have a lot of different choices. Make sure that you keep your options open. Your odds of scoring a position are much higher if you submit a large number of applications.
When you write your resume, be sure to include your social media contacts. Social media is still a growing area, but many companies want people with the skill set of posting and writing on social media.
Set up an email address that sounds professional. This is the first thing your employer will learn about you. A nice address with an identifier, such as your last name should be used. Don’t be overlooked for your dream job because of an unprofessional email address.
The insights here have equipped you with the information you need to find employment. You have the information now, just use it! Now go get that job!
It’s never fun to be unemployed. However, you might have an opportunity to get a job that is even better than the old one. For inspiration and insight, read on.
Try to follow the proper format when applying for a job. You may be asked for dates or details from years ago that you do not remember anymore. Keep a piece of paper with you that has all the dates and other pertinant info on it that you’ll need. 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. It does have to be up-to-date, of course. Your resume is not going to be the only deciding factor. You must also present yourself as enthusiastic, dedicated and smart. Also, emphasize the different things that you can bring to the company.
Do not count on one job when you are trying to find employment. 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. Keep all avenues open until a job is locked down. Your odds of scoring a position are much higher if you submit a large number of applications.
Include social media on your resume. By showing that you’re involved to an extent in social media, you’re making yourself relevant.
Answer your personal phone line professionally. Although it will likely be a family or friend calling you, it’s possible it could be a potential employer, and he or she will be extremely impressed by your professionalism. This will give you an edge immediately.
When you become aware of your future unemployment, get unemployment benefits. You can’t wait until the severance ends or your last work day. Signing up as quickly as possible means you’ll be approved faster, and your benefits will start sooner.
If you are new on the job, make sure you communicate with your boss. A lot of problems in the workplace come about thanks to too little communication, which can make your boss very leery. Always make sure that your boss knows what is going on. Your boss may just like this a lot and can help you to figure out just what they’re looking for from you.
Your job hunt can help you get a happy and long career that you love. When you can work in a field you love, you’ll be overjoyed. Relax, get ready and find that job!
While everyone requires a job to survive, not everyone knows what it takes to get one. Information is critical to identifying your career path and impressing employers. The article below can help.
Take some helpful classes. This can help you find a new job in your field or a different one. Take time to learn all that you can for a better job. You can even study online at home.
Dress well for the interview, even if it’s for a job that requires casual attire. Even if the workplace lets employees dress casually, you should still make a good impression on the hiring manager.
Don’t get into fights at work. It’s important to be known as someone that other people can get along with so that you’re not known as a difficult person to get along with. If people see you as contentious, you will not be promoted or get good raises.
Relate your cover letter to your qualifications. Mention any particular work experience that you might have that they are looking for. Carefully read the ad to identify the areas you can point to in your qualifications.
Carry a paper with pertinent application information. Often, you may be requested to provide information that you do not remember anymore, like dates and contacts. It’s a great idea to have all of this information written down on some kind of a “cheat sheet”. This makes it easier for you when you fill out your applications.
Your job title may be restricting your job search. Expand beyond it. Research other jobs online, and determine which ones are right for you. This will include you in the pool of a larger array of potential jobs.
On your resume, put some of your social media experience on it. Social media has become very integral to many different companies and organizations, and having that skill set – even if solely from a personal posting standpoint – can help you land a position as it shows you potentially have the know-how.
Finding a job will be much easier if you follow the advice that you read in this article. You now know more about the job search and being successful during an interview. These techniques and information will prove to be valuable moving forward.
The economy has taken the rug out from under many people. If you lose your job, you may feel frightened and unsure of what lies ahead. Luckily, the article that follows has some information that will make things easier for you. Use these tips and you’ll soon find yourself working again!
Regardless of the type of job you seek, you should dress nicely for the interview. The right kind of clothes makes a person seem more qualified. You don’t have to make yourself stand out every time, but it’s important do do so if you’re just giving someone your resume.
Take advantage of the resources and networks around you, talk to people. They might be able to introduce you to potential employers. Lots of people are afraid of asking for help; however, it’s vital that you do. Keep in mind that potential employers will be more likely to hire you if someone the know recommends you.
While job searching, give it your all in your current job. Otherwise, you may develop a reputation for not following through. Worse is, your new employer may find out and not hire you. You will be successful if you always apply yourself.
Consider going to school. This can help you find a new job in your field or a different one. You should focus on expanding both your knowledge and your practical skills in order to make yourself more attractive to potential employers. The Internet features many programs that allow you to learn on your own schedule.
You should find out the average pay of people in your industry so you can negotiate the correct pay for yourself. People usually ask for salaries that are below their actual worth, anticipating employers to shy away from expensive demands. Do not sound desperate and do not ask for too much either.
Keep looking for ways to develop your skills. The technology in the workplace evolves all the time, as well as business practices. Make yourself a great hire by keeping tabs on how things are changing. Certain classes and seminars might be available to you. This will only help you be a more desirable employee in the long run.
You can get more employees through offering more amenities. For example, some of the best companies provide on site restaurants, saunas, gyms and so on. These little improvements will drive the demand for your position higher and increase the supply of workers that apply for the job. As the employer, you will be able to choose from the cream of the crop.
Regardless of the doubts you may have, keep on trying. Redo your entire resume and keep applying for all kinds of jobs. Do whatever it takes to return to employment. While these tips may help you a lot, you have to make sure never to give up if you want to succeed.
Almost everyone needs to be employed in order to make ends meet. Being unemployed can cause depression due to a lack of resources. That’s why you need to be vigilant about getting a job when you are searching. This article provides you with solid advice about this, so you can work towards getting the right job.
If you currently have a job but are looking for another one, you should not slack off at work. You will get a bad reputation if you do not stay focused on your current job. Potential employers will probably find out about your attitude when they contact your current employers. Success comes only to those who continually deliver work of the highest quality.
Use LinkedIn to your advantage when it comes to finding a job. There is a section of the website called “Questions & Answers” that will let you show off your skills within your industry. You can also ask questions yourself to find out about industry prospects from other users.
Even if the job you’re applying for is a casual one, show the interview and employer respect by dressing impressively and professionally. No matter if you’re applying for a place that gives you the freedom of casual dress or not, dress to impress.
Before your interview, think about what you want to ask the interviewer. Often times they will ask if you want to know anything else, and the answer is always yes! Learn what you can about the work environment, the company’s goals and anything unclear about the position you seek.
Obtaining a good position is about having proper skills and presenting yourself well. Paying attention to these two details will help you succeed. It’s important that you make good use of this information to place yourself in the best possible position. Don’t get discouraged and give up because eventually you will land a job.
Nobody likes being out of work, especially after going to interviews only to have your hopes of a new job dashed over and over. Finding a job does not need to be hard though. Just read on to find out more.
When you want a job, make certain you go to the interview dressed nicely, whatever the position. Interviewers think of a well-dressed person as a better candidate. You don’t have to make yourself stand out every time, but it’s important do do so if you’re just giving someone your resume.
If you’re not able to find a job, your searching strategy needs to be reworked. Just because lots of places aren’t hiring doesn’t mean you should 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.
Get enrolled in school. An update to your education may be required to find a job. Learning as much as possible is key to obtaining a better position. You can find online self-paced programs that can fit your schedule.
Use the resources that are offered to you by LinkedIn. You can use the Question and Answer area of the site to demonstrate your expertise in your field. This area can also be used to ask questions of others regarding jobs and industries.
Try to stay out of conflicts at work. Being know as a team player, someone who can work well with others, is a valuable trait. A good reputation is important for your image in the workplace.
You can use a certain type of form that helps you fill out applications much easier. 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 help to make the application process go a lot quicker and smoother.
Go to a lot of career fairs when you’re looking for employment. These fairs are great for making contacts and acquiring knowledge. In addition, you can obtain valuable references that can increase your odds of landing the job you want.
Don’t think that you only should take one kind of job, because there are jobs out there that have a few different titles. Find what other names your preferred jobs go by. Doing this will help you find a lot more potential employment opportunities.
Although your resume is important, understand that you will need more than an excellent resume to land a job. Try to keep it current and comprehensive when you present it. The resume alone will not decide your status. Most employers wish to hire loyal, ambitious and enthusiastic people, who will help move their business forward. Figure out and highlight your strengths.
After reading this article, you see that looking for employment is not all discouraging news like it was for you in past years. The things this article has shown you have been proven to work. Give it a try and before you know it, you will have the job of your dreams.
Many people complain about their jobs, their bosses and colleagues until they end up with no job. Then, the realization of how difficult life is without work sets in. If you are unemployed don’t worry, there is help available. Follow these tips to nail your interviews and land that job in a heartbeat.
Put forth your full effort at work, even if you are seeking different employment. If you don’t do what you are supposed to, your employers may be unhappy with your performance. After all, you need references in order to land a better job and if your references tell your potential employers that you slacked off, your chances of landing the job are decreased. You have to consistently work hard if you would like to succeed.
Make yourself aware of the typical salary, benefits and work perks of various employers in your industry. This allows you to negotiate to your advantage without selling yourself short. Don’t guess too low because you fear an employer will not see your value. While it is true that employers won’t want to overpay you, asking for a salary that is too little may harm your chances of getting the job just as much as asking for one that is too much!
Relate your cover letter to your qualifications. When they ask for a leader, mention your leadership skills. Pay close attention to the wording of the employment advertisement and try to match the qualifications sought with those you offer.
You want to always show up early for your job. You should always allow time for unexpected delays. Proving that you can show up to work on time every day will have a positive impact on your employment.
Being unemployed is stressful and the anxiety stays with you until you’re able to land a job again. Hopefully, the tips of this article can keep you moving in the right direction and continuing the search. A positive attitude and the willingness to keep pushing forward is truly the key to your success.
While everyone requires a job to survive, not everyone knows what it takes to get one. It can help to have the right information when you want a certain position or to impress any interviewer. This piece is a good way to learn the process and achieve success.
Don’t just search for one job title, as the position you are seeking might be listed under different names. Research online to discover similar job titles that match what you want. This can expand your scope when you are applying for jobs.
It is vital that you dress appropriately when you are interviewing for a job. Have a well groomed appearance and job-appropriate clothing. You want to make the best first impression possible as this carries a great deal of weight with employers.
You should avoid being set on a single position. Getting a job is not easy so make sure you have a lot of different choices. Be sure that you have other things to fall back on. More applications lead to more job opportunities.
If you have positions that need to be filled, you should be patient. You should never settle for the first person who walks through your doors. Be patient and persevere and the right employee will appear.
If you have an old email address, update it to a professional one. You don’t want your email address to make a negative first impression. Select an easy address that includes your last name. You wouldn’t want to rob yourself of that dream job just because you’ve got a silly email address.
Take advantage of the health insurance plan offered by your employer. This will be taken out of your check before there are taxes taken out which makes it fairly cheap. When you are married, you need to compare both your plan and your spouse’s plan in order to determine which one is the best.
These suggestions were designed to help you in your employment search. You now have the information you need to find the jobs you want and be successful in any interview. Use this information to set yourself up in just the right position to get a good interview and a great job.