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.
Are you one of those that are searching for employment and are becoming frustrated with the lack of opportunities? These days it can be quite a bit of work just to land a successful job. You have to show the employer that you’re the right person for the position. Read this advice to grasp each detail entirely.
During the interview, make sure that your clothing is up to par. The more professional you look, the more credibility you have. You do not need to dress to the nines, but you do need to look successful, even if you’re just filling out an application.
If finding a job has been real rough, consider changing up your strategy. Maintain a high level of persistence when job searching. Broaden your search to different regions, but be certain they are affordable.
You should continue to do good work at your current job while seeking a new job. Failing to give it your best reflects poorly on your character and work ethic. You may even find that your current job will hear about it too. Success comes with hard work.
Check out LinkedIn, and take advantage of its many resources. The Q&A section is a great place to show off your knowledge. It works both ways on LinkedIn, too, so you can ask questions about certain positions and find out more about an opportunity.
Make sure to wear your best clothes before going to an interview, even when the place isn’t somewhere that makes you dress nicely. You’re looking to impress the person hiring, so show them what you are capable of.
Before you arrive at your interview, formulate two or more questions to ask. Generally you’ll find that an interviewer will see if you need to ask any additional questions when the interview is over. You should consider the different aspects of the work environment that you aren’t capable of learning without first-hand experience.
Finding a new place to work should not be as difficult when applying the advice you’ve taken from above. As long as you prove that you are a viable candidate, you should be able to land an excellent job. Use the advice provided in the above article the next time you are applying for a job, and you can obtain it!
You’ll be financially stable once you land a great job. But, it is not always simple to get a job. There are strategies you can use to improve your chances of finding a good job in your field of expertise. This piece can help you put your best foot forward.
Consider changing up a search strategy that is not working for you. Although you may struggle to find any companies that are hiring, you shouldn’t give up. Explore all the opportunities that surround you, and consider taking any that you can afford.
Go back to school to improve your education. You might need more skill in order to get a job. You should always embrace learning opportunities as a way to land better jobs. There are many self-study programs online that you can fit into whatever schedule you have.
Plan to show up early for work. You should always allow time for unexpected delays. Employers appreciate punctual employees.
Go to a lot of career fairs when you’re looking for employment. These fairs can provide you with excellent advice and help prepare you for obtaining the job you want. You can also gain some great contacts that can aide you in getting the right job.
When you are hoping to employ someone, exercise patients as you look. Regardless of why you are seeking a new employee, you should not hire anyone that is not a good fit. If you hire someone out of desperation, you are bound to regret it, and you may have a hard time getting rid of an individual who is not right for the job.
Check up on all of the references you provided on your resume. You would hate for an employer to call one of your references to discover that it is not completely accurate. Contact your professional references to make certain their contact information is still accurate.
Enroll in the health insurance your employer offers. It is cheaper to have the premium taken directly from your pay than what you would pay for an individual plan. If your spouse works, compare your plans and go with the one that provides the most benefits.
When you become aware of your future unemployment, get unemployment benefits. It is unwise to delay the process until you are out of funds. Your benefits will start sooner if you sign up and are approved right away.
You should try networking with other people who are in the field you’re interested in. Increasing your network allows you to build excellent professional relationships, increasing your marketability for jobs. Dive into your desired industry sector by participating in networking events and educational opportunities. Use networking to become educated about becoming a leader in that field.
As this article has shown you, there is quite a bit you have to do when you’re looking for work, so that you fit the job you’re applying for. It can be somewhat overwhelming preparing everything for your job search, but the advice you’ve read should help guide you with this task. Keep the advice here in mind, use all of it and get the job you want.
Have you been looking for work for a long time? If you can’t find work, that can be very difficult to get through, especially when you were let go from your last job. You must remember, though, the right job can be within your grasp. Look at these tips to find out how.
If you’re not able to find a job, your searching strategy needs to be reworked. Though many places are not hiring, do not become discouraged. Make some time to visit other areas, however, be sure that it is some place you’d be willing to live in should you get the job.
While you may be applying for a job at a factory, dress as the factory manager would. Even if the workplace lets employees dress casually, you should still make a good impression on the hiring manager.
You want to always show up early for your job. You never know what might get in your way on the trip. Timeliness is a basic quality in any employee, and potential employers will be turned off if they find out that you are consistently late for work.
Put your social media presence on your resume. Social media is widely used in business, and showing you know what you’re doing can make the right impression.
Companies ultimately are concerned with their bottom line. When preparing for an interview and finishing up your resume, try to figure out how to word your personal sales pitch of how your talents can increase your prospective employer’s revenue. An upstanding and reliable employee is a valuable commodity, but employers want to see how you will actively benefit the organization.
You now know you can find the job you need, even in this economy. The challenge of finding a job can come to an end. Use this good advice to find certain success. A great job can be yours in no time.
Almost everyone needs to be employed in order to make ends meet. It is hard to feel good and accomplish the simple things in life when you are unemployed. If you want to find employment, you need to invest time and effort into your job search! The advice from this article should help you as you pursue employment!
You should be aware of the average salary in your field so you can get the best deal. People often do not demand fair pay because they believe that employers will refuse to hire them if they do. While that is partially true, you don’t want to look too desperate either.
Regardless of the company’s dress code, you should always dress professionally. You will still impress the interview if you dress to impress.
When searching for a job, it’s vital that you are prepared. Is your resume updated and correct? Your employer will expect information about your education, certificates and degrees earned and other proficiencies. Finally, make sure that you include any relevant information that pertains to your previous work and education.
Try to stay out of conflicts at work. Being a team player is a big requirement for most employers, so it is important that you get along with others. If you have a good reputation, it will follow you around in the future so that you can get things like promotions or raises.
The resume cover letter should be unique to each job you apply for. For example, if the company has advertised for a person with leadership skills, be sure to tell them about yours! After compiling your cover letter, take ample time to edit it. You want it to be very appealing, while also remaining short and to the point.
Make a document that will help you fill out applications quickly. You may be asked for dates or details from years ago that you do not remember anymore. It’s a great idea to have a cheat sheet on which have this hard to remember material recorded. This will allow you to finish more applications.
Have the proper attitude! Try not to let failure interfere with your feelings. Do not live off unemployment until it runs out. Make goals for yourself and fill out as many applications as you can.
Go to a lot of career fairs when you’re looking for employment. You can learn quite a bit from the fairs that can help you find the right job. Also, you should be able to build a better contact list of people who can assist you in getting a job.
When searching for jobs, open your options when it comes to job titles. Research on the Internet different job titles that may exist and be similar to what you want. This will help ensure you have the widest range of possible jobs.
Being able to market yourself well is essential in the job market. Doing those things will help you to be unstoppable within your field. Use this information as a booster to improve your technique and land the job. Keep a positive attitude and be persistent!
Earning money is a requirement for people to pay their bills. How do you find a new job or a better job? This article can help you search for new or better employment.
You don’t want any conflicts with coworkers. Being able to get along with coworkers, including difficult ones, is an important skill that future employers will look for. If people see you as contentious, you will not be promoted or get good raises.
Continuously update your skills. The technology in the workplace evolves all the time, as well as business practices. Keep abreast of these changes to maximize your employability. Therefore, attend seminars and take classes on a new piece of technology. The more you’re able to learn, the better you can market yourself to people that you wish to work for.
Remember that a resume is only a portion of what determines who gets hired. It must be updated to remain current and fresh. However, you need more than a resume to secure a job. Employers want those individuals who can move the business forward with energy and passion. Always focus on your strengths, and play to them in the interview.
When you are going to be interviewed for a job, you need to dress professionally. Be sure to choose appropriate attire and pay close attention to the details like your nails and hair. The way that you present yourself shows a lot about your character.
If you don’t have one, try obtaining a professional email address. Rest assured that prospective employers are paying attention. If possible, opt for an address that incorporates your last name. Do not let employers dismiss your applications because of an unprofessional email address.
Have a professional attitude when answering your phone. You may be shocked that they won’t expect a proper person there, but they’ll be impressed by your demeanor at the start.
You should try using a good employment agency. These agencies do not charge you, and they do much of the work in the background to match you with a job. They will assess your skills and help find the best fit for you. Keep checking back so they keep your name at the top of their list.
After reading this article, you can be aware of what qualities are necessary to get the job you need. These tips will help you regardless of your experience or the type of job you want. Remember it when you are hunting for a job.
If you have been searching for a job recently, you likely have become extremely frustrated. It takes a lot of work to find a good job today. It’s essential that you demonstrate your importance to any potential employers. Keep on reading to find out how to accomplish this.
When you want to get a job, you need to dress your best, even if the job doesn’t require you to. The way you dress has a direct correlation as to how others perceive you. Though a three-piece suit may not be necessary, keep a professional tone to any clothing you wear during your job search.
Tweak your strategy for job searching if you are not having any success. There are a lot of places that may not be hiring these days but that shouldn’t stop you. 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.
Gear the cover letter towards the skills that you bring to the table. If they said they want someone with leadership skills, mention times you have shown leadership. Carefully inspect the job posting for any clues that you can include in the cover letter of your resume that will help you stand out of the crowd.
When looking for a job, go to plenty of career fairs. You can learn a lot and find out about different types of jobs you may not have considered. You can also make lots of contacts who can prove valuable in your search.
When searching for jobs, open your options when it comes to job titles. Research online to discover similar job titles that match what you want. That way, you will be able to apply for more positions.
As you’ve seen, finding a job should not have to be difficult. You can get a great job when you show that you’re a good candidate. If you use the tips from this article, getting that job should be no issue.
The economy makes the job environment bleak right now, and everyone knows this. To get through this rough patch, you must become fully educated about employment. Keep reading this article if you want to learn about how to land the ideal job.
Always dress up for your job interviews, even if you will not need to dress professionally on a daily basis. You’re looking to impress the person hiring, so show them what you are capable of.
Amenities are something that can attract employers who want to work harder. There are many companies that offer gyms, small restaurants, and other things for their employees. People will be excited to work in such places, causing competition to grow. Therefore, you have to be at the top of your game to be selected by the employer.
You can use a certain type of form that helps you fill out applications much easier. You may be asked for prior job information that you don’t remember. A good practice is to write this down on a small piece of paper as a reminder. This will allow you to finish more applications.
If you are looking for a job, it’s a good idea to go to a lot of job fairs. These kinds of fairs can provide you with valuable information while letting you decide what kind of work is best for you. You can also make good friends and contacts who can be very helpful to you.
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. Research other jobs online, and determine which ones are right for you. This will broaden your range of possible jobs.
When you write your resume, be sure to include your social media contacts. Social media plays an important part in business marketing and networking, so demonstrate you have those skills.
As you have read already, the current state of the economy is making it harder than ever to find a decent job. It is not always easy to get the job you want and to survive during difficult times. Make use of the advice you have read here in your own life to give yourself a better shot at a good job.
Finding the right job may prove to be challenging. Do you enjoy working with others, or are you a lone wolf? You need to answer these questions for yourself in order to know what direction to go in. This article should help show you how to find a job that’s suitable for your needs.
When you are job hunting, dress for success, no matter the job. Your appearance and attire say a lot about who you are as an individual. Whether you are submitting a resume or interviewing for the job, make sure that you are dressed correctly.
Go back to school. Job hunting often requires you to add to your skills. You should focus on expanding both your knowledge and your practical skills in order to make yourself more attractive to potential employers. A number of self-study programs are available on the Internet that allow you to fit your studies into your schedule.
You need to know the salaries of people in your position so that you can properly negotiate your own pay rate. Don’t guess too low because you fear an employer will not see your value. Although you should not request something astronomical, you want to look like you know the value of your position.
Make sure to wear your best clothes before going to an interview, even when the place isn’t somewhere that makes you dress nicely. You’re looking to impress the person hiring, so show them what you are capable of.
Your cover letter should include your qualifications. If you are responding to an ad that requires leadership, focus your cover letter on your leadership skills. Your goal is to tailor the cover letter to closely align with the company’s needs.
Keep looking for ways to develop your skills. Business practices, as well as technology, are always changing and evolving. 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. Go to classes on subjects that you wish to know more about, and attend seminars. This will only help you be a more desirable employee in the long run.
It’s a good idea to mention social medial on resumes. Social media is still a growing area, but many companies want people with the skill set of posting and writing on social media.
Unemployment benefits can help you make ends meet when you lose your job. You shouldn’t wait for your severance to end, or your last day on the job. A fast application will lead to fast approval and payment.
As stated previously, choosing the optimum job for you can be very difficult. You have to know what you want and what you’re good at doing. If you take heed of these tips, you’ll surely find the job that is right for you.
The economy is tough right now. Suddenly losing your job can be a frightening experience. The advice contained herein should help get you back on your feet. Use these tips in your day to day life and you can be working again in no time!
Dress well for the interview, even if it’s for a job that requires casual attire. Just because the place may allow you to dress casually, there is nothing wrong with showing a little respect to the person having the interview.
When you’re filling out applications, use a form that will make the task easier. You may be asked for dates or details from years ago that you do not remember anymore. Having such information written down on paper is a smart idea. Finishing applications will be easier and faster too.
Keep your business relationships and friendships separate. Maintain professional relationships with the people at your job. Having personal relationships can bring problems to the workplace. Avoid that potentially disastrous scene and do not risk your job.
You should be in the right frame of mind when looking for a job. Work at finding work, and don’t accept failure. Do not live off unemployment until it runs out. It is essential to set goals for yourself concerning how many job applications you turn in.
Don’t put all your hopes in one job. When something is promising, it doesn’t mean it’s guaranteed. Always make sure you have options available. By applying to many different places, you have a better chance of obtaining a job.
If you have an old email address, update it to a professional one. Think of your email address as a first impression in the eyes of would-be employers. Your email address should be simple and include your last name. Don’t miss out on the job you want due to a silly email address you got years ago.
You need to keep going, no matter how horrible things look. Apply for out of the ordinary jobs and revise your resume. Do whatever it takes to regain employment. The advice from this article can help, as long as you stay focused on your goal.
It is not always easy to get a job, especially in economic times like this. There are a lot of different things you must remember if you’re trying to find work. You can get further ahead by using the advice given here.
Talk to friends about job leads. They might be able to introduce you to potential employers. This step is often overlooked, however it is essential to start here as someone who comes recommended is far more likely to be hired.
Take some classes! Your job search may require you to beef up your set of skills. Improving your education to fill in any gaps in your skill set or update your knowledge on certain subjects is very important. You can find online self-paced programs that can fit your schedule.
Prepare several questions in advance on the day of the interview. It is quite common for the interviewer to end the interview by asking if there is anything you would like to know. This is the time to ask the questions that you have already prepared.
Make sure you connect your qualifications to the ad when writing your cover letter. If they said they want someone with leadership skills, mention times you have shown leadership. Re-read the ad carefully and look for things that you can describe about yourself in your cover letter so that you stand out.
Plan on arriving early to work. You never know what could happen on your way to work, which is why you should give yourself enough time. Therefore, you are showing your punctuality and willingness to work.
It’s not uncommon for companies to offer different perks to gain the attention of prospective employees. Gyms and a quality cafeteria can give employees the drive to work harder. Employees want these types of jobs, and it brings in the best and brightest for them. This will allow you to be sure that you get the best people to work for your company.
Remember that a resume is only a stepping stone to finding employment. Make sure that your resume is completely up-to-date. Your resume is not the only factor when it comes to hiring. Employers want those individuals who can move the business forward with energy and passion. Always focus on your strengths, and play to them in the interview.
If you don’t already have one, get a professional sounding email address. This is one of the first things that an employer is going to see, next to your name. Select an address that contains your last name at the minimum. It would be such a waste if you didn’t get a job simply because of an old, immature email address.
As mentioned earlier, it is hard to find work when the economy is bad. In addition to high standards for judging your skills, you are also competing with numerous other applicants. You need to stand out against the others around you and this article will help you do just that.