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.
A bad economy can make it hard to find or keep a job. Suddenly losing your job can be a frightening experience. Fortunately, the following article is loaded with great advice you can use to facilitate your job search. Finding a job is as simple as using this advice.
You should be aware of the average salary in your field so you can get the best deal. Often, people underestimate the amount of salary they could reasonably request. 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!
You need a positive frame of mind. When you are looking for work, do not let yourself get worn down. Don’t rely on unemployment or you may feel too comfortable in this position. Rather, be sure to fill out a reasonable number of applications on a weekly basis.
Go to lots of career fairs if you are job hunting. They can be really instructional and give you lots of intel on what types of jobs are out there. You can network with people you meet there, too.
If you don’t have one, work on getting a professional email address. The first thing your employer will see is your contact information. Just pick a simple address, preferably with your last name included. You don’t want to miss out on your dream job because of a silly-sounding email address you set up years ago.
Think about giving out your cell number when you’re doing your applications instead of the land line at your home. This opens up the opportunities for you to immediately get the call, no matter where you are. In addition, your cell phone can be taken with your wherever you go, so you will always be available to talk.
Whenever you discover that you will be terminated from your job, immediately register for unemployment benefits. Waiting until you’re on your way out the door is the last thing you want to do. Sign up right away so that all the red-tape and paperwork will have time to process before you are penniless.
No matter how bad things look, you really need to keep trying. Just keep renewing your resume and looking for jobs. Use whatever you can think of to get yourself back among the ranks of the employed. Use these suggestions to help you on your way.
It can be hard to find a job, especially if you don’t know where to look. Many resources are available for those looking for employment. This article can be your guide, so read on.
LinkedIn is a valuable tool to use while job searching. The Q and A section is a great way to showcase your knowledge and skill. Use the same section to talk to other workers on LinkedIn about the positions they hold, experience, skills and much more.
It is important to be prepared with questions of your own for your interview. They almost always ask if you have a question at the end of the interview. Learn what you can about the work environment, the company’s goals and anything unclear about the position you seek.
You can get more employees through offering more amenities. Lots of the best companies provide amenities like gyms, restaurants, etc. People will fight for jobs at these companies, of course. Adding these perks is helpful to employers in attracting only the cream of the crop.
Avoid making friends with your co-workers and bosses. It is best to keep everything professional when dealing with the people that you work with. Personal relationships in the workplace only complicates the business environment. If relationships at work are affecting your production, steer clear of them.
Make sure you have a good mindset. Failure is almost certain at some point, so take this with a grain of salt. Never skate along with simply unemployment wages, or you’ll easily become complacent with your current life. Stick to your goals and keep working towards finding another job.
Check up on the references you have on your resume. It’s not good if the person you want to work for tries to call these people to find that they’re not even available anymore. Verify that your references all have the number you remember and still live in the same place.
Keep in mind that money is the motivating factor for most companies. How can you word your resume or speak in an interview to tell them you’ll make them money? You may be honest and responsible, but they are looking for more.
Get unemployment benefits if you lose your job. You can’t wait until the severance ends or your last work day. The sooner you apply, the greater the likelihood of getting approved.
Consider networking within your desired field. Being good at networking will allow you to come into contact with more people in your profession. Workshops, lectures and other industry events are excellent sources of current, relevant and critical news. Use networking in order to become a leader in the field you choose.
During your interview, it’s vital that you are giving off the right vibe. Keep a positive attitude and smile at the interviewer. This will give your interviewer a great impression and can be a deciding factor in the hiring process.
Finding a job isn’t as easy as it sounds. That is the reason you must look in a number of places for a job instead of sticking with one. The advice you’ve just read can assist you in this.
It’s so hard to find yourself unemployed. However, this could be an excellent opportunity to turn your life around and begin work within an industry that you enjoy. This article has some tips to make that happen.
Go back to school. In order to gain employment, you may need to update and expand your skill set. The greater your knowledge, the more opportunities you will have. You can even study online at home.
You want to always show up early for your job. Many things can happen that can hold you up. Give yourself plenty of time to get there. Proving that you can show up to work on time every day will have a positive impact on your employment.
On your resume, put some of your social media experience on it. Social media has been known to land people jobs, so take advantage of this current trend.
Get an email address that sounds professional. Understand that this email address is one of the first impressions that an employer has of you. Generally, you should use your last name. When someone sees a silly email address, they might ignore the email entirely.
Get in contact with a recruitment agency. They will help reduce the stress of job searching and make things clear for you. They will go over the skills you have so that you can get work that you’d do well at. Stay in touch with your employment agency to find out about new job opportunities.
Having trouble coming up with the style your resume should be? If so, check out online templates. You can tailor the abundant free options to suit your needs. Select a resume which focuses on your most relevant data.
The search for a job is the first step to finding the career you’ve always wanted. Join the ranks of the fortunate men and women who wake up each morning with an honest desire to start work. Now get out there and get to work on finding the job you’ve always wanted!
Everyone wants a job, but it can be hard to get one. You need to train yourself on the best job hunting techniques to land your dream job. The below article provides excellent advice that will help you become employed in your dream job.
Even if you’re already seeking employment, it’s important to do well at your current job still. This does not give you the option to slack off at your current job. You may even find that your current job will hear about it too. Success comes only to those who continually deliver work of the highest quality.
Know what the industry standard is when it comes to pay, and do not undervalue yourself during salary negotiation. Don’t be afraid to go for it and ask for what you are worth. This shows that you are confident in your abilities, and not afraid to take a chance and go for what you want.
Get in the proper mindset. Try not to let failure interfere with your feelings. Don’t sit back on unemployment and ignore job hunting. 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. You need to update it so it is current and fresh. The resume won’t get you the job, though. Employers are seeking confident and positive individuals to fill their positions. Figure out and highlight your strengths.
It’s important that you remain patient when looking for a job. No matter what your circumstances are, you do not want to rush into hiring someone just so an empty spot is filled. You don’t want to rush any hires because you might be disappointed later, and they’re not easy to remove in some states.
Include social media addresses in your resume. In the modern world, social media means something, but be sure you have screened and cleaned it up first!
As mentioned earlier, employment is an extremely complicated subject. You need a job to live, of course. When you get the right information and use the tips here, you can get a great job.
I need a job, you need a job, we all need a job! You need to train yourself on the best job hunting techniques to land your dream job. Learn the tips in this article, and you’ll have better success in your job search.
If you cannot find a job, you may want to think about changing your job searching strategy. There are quite a few places that aren’t looking for people right now, but don’t let that deter you. Even if it’s not exactly your dream job, try checking out other opportunities in areas you wouldn’t have considered otherwise. Getting your foot in the door is what’s important.
Use LinkedIn and its resources. Their Q&A section is a great place to display your qualifications and expertise. You can also talk to others about their titles, jobs and experience in their roles and fields.
Know what the industry standard is when it comes to pay, and do not undervalue yourself during salary negotiation. Many people ask for a salary that is much less than they are worth since they feel employers will balk at anything too high. Although you should not request something astronomical, you want to look like you know the value of your position.
Bring up your qualifications for a certain job in a cover letter. Mention any particular work experience that you might have that they are looking for. Make yourself stand out in the cover letter by using details that are listed in the ad.
It’s important to dress well when going on an interview. Carefully select your clothing and style your hair so that you present a professional image. Don’t ignore the little details like the condition of your nails and shoes. Potential employers will judge you by how you look, so look good.
When you apply for jobs, don’t just focus on one job. You won’t have the job until the contract is signed. 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.
As mentioned, it can be complicated to get a job. You need to find a good job. By learning all you can about employment, and using the tips you just read to your advantage, you’ll be able to get that dream job that you’ve always wanted to have.
Has your job search been an ongoing challenge for a while? It’s hard on a person when they’re not able to find work, especially if they have been fired from a place they enjoyed working at. It is still possible to find a new dream job. Review these tips to find out how.
When you want to get a job, you need to dress your best, even if the job doesn’t require you to. Nicely dressed people are seen more favorably by potential employers. 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.
You must be prepared when searching for a job. Your resume should be fully current, with a strong list of qualifications. List your accomplishments, and include your educational background. You should include information relevant to your educational background as well as references from your work history.
Prepare several questions to ask your interviewer. Often times they will ask if you want to know anything else, and the answer is always yes! Ask questions concerning work environment and responsibilities.
Don’t stop learning new skills ever. With rapidly evolving technology, the way companies do business can change from year to year. You need to know all the relevant skills to be viable in your field. If you need to, take a few classes or sign up for seminares. When prospective employers see that you care, they will be more interested in you.
Look for a job with great amenities. Some great employers offer things like saunas, massages, and gyms at the workplace! A lot of people will want these amenities, and thus apply for those jobs. As the employer, you will be able to choose from the cream of the crop.
Use only a professional-sounding email address for work. This is the first thing your employer will learn about you. Use an email address that is easy to remember and includes your last name. Having an unprofessional email address can actually cause you to lose the job before you’ve even been interviewed.
Don’t be shy about networking. This may help you meet people in your niche, ones that can help create an atmosphere conducive to success in life and business. Soak up every morsel of knowledge about your chosen field that you can by attending seminars, conferences, networking events and webinars. Learn as much as possible to become a thought-proving industry leader.
You now know you can find the job you need, even in this economy. Although it might be difficult to find something that’s right for you, just know that the opportunities are out there. Use these tips to help you in your search. You can find your ideal job today!
Everyone needs to be concerned about employment. In order to land the job of your dreams, you must be aware of as much knowledge as possible. You are sure to benefit from the tips contained within this article.
If you’re having a hard time with your job search, you might want to consider a different approach. Maintain a high level of persistence when job searching. 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.
If you currently have a job but are looking for another one, you should not slack off at work. Being a slacker will give you a bad reputation. Worse is, your new employer may find out and not hire you. Success depends on your ability to work to your full potential.
LinkedIn is a great place to find information about employment. Demonstrate your knowledge about your chosen field in the Q and A area of the site. You can also use this area to ask other users questions about their jobs, ideas and experience in certain industries and roles.
Get to work early if you want to make a good impression. There can be things that delay your trip, and you must make sure you’re on time. Your employer will be happier with your work if you are always here on time.
You must dress in a professional manner when you are being interviewed for a job. Pay attention to your grooming and dress in an outfit that is tasteful and appropriate. Potential employers will judge you by how you look, so look good.
When you apply for positions, you must be careful not to bank on a particular one. No matter how promising a interview seems, nothing is certain until you are hired. Always make sure you have options available. The more places you send your resume to increases your chance of finding a job.
Patience is incredibly important for both job hunters and job posters. You need to wait until you find the right 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.
As previously stated, job hunting is extremely complicated. Your job affects nearly all aspects of your life, so it is important to take the job search process seriously. Using the previous suggestions, you can have the career of your dreams.
The economy has really hurt many people. Not having a job can leave you feeling very frightened. However, with the advice given in this article, you will be able to successfully search for a job. Use these tips to ensure that you get yourself into a great position and become active member of the workforce.
Regardless of the type of job you seek, you should dress nicely for the interview. People often think the better dressers are the better candidates. Dress professionally at all times to make the best first impression possible.
If you are unable to find work, you might need to tweak your job search strategy. Maintain a high level of persistence when job searching. 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.
Return to school. At times, discovering the job you want requires that you expand your skills. The more skills that you possess, the better your chances are of landing a job. Look online to see what sort of online classes you can take in your free time to help land a better position.
Be aware of the salary of people in your field to prevent a lower-than-average salary. It’s not uncommon for people to make the mistake of low balling the amount they ask for up front, because they’re afraid of the employer saying no. At the same time, if you post a request that is too low you may appear desperate.
You must always make sure to try to keep things professional and conflict-free with your fellow coworkers. Being a team player is a big requirement for most employers, so it is important that you get along with others. It will also make you a good candidate to move up in your company and possibly take on management roles.
Carry all your information relevant for job applications on a cheat sheet. A lot of the time you are going to have to provide contact information and dates you may not remember. Consider keeping a record of this information. When filling out applications, this will make the task much easier to complete.
Just because things look bad, it doesn’t hurt to try your best. Redo your resume and submit it for a different type of job. Do whatever it takes to regain employment. Combined with a persistent nature, these tips will work for you.
It is particularly difficult to find employment in today’s economic climate. Finding and keeping a reasonable job is a challenge all are facing currently. In this article, there are many tips that can be useful to anyone in need of a job. Keep reading to be more educated.
Consult people that you know to help you with your job search. Find out if they know anyone looking for someone with your skillset, and find out if they’d be willing to make an introduction. This step is often overlooked, however it is essential to start here as someone who comes recommended is far more likely to be hired.
You want to do the best job you can at your current position, even if you’re searching for a new occupation. Your reputation can be sullied if you shirk your responsibilities. 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. If you want to succeed, you must always give your all to what you do.
Take advantage of all the resources LinkedIn has to offer. 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.
Preparation is necessary before an interview. Make sure you have a resume that is up-to-date and lists all of your qualifications. Your employer will expect information about your education, certificates and degrees earned and other proficiencies. You should provide references for previous jobs and outline all educational opportunities you have taken.
Relate your cover letter to your qualifications. For example, suppose the listing states that the ideal candidate has experience managing others. Briefly point out past positions and projects that showcased your managerial abilities. Look over the job posting thoroughly and then include some skills they want in the cover letter you write.
As mentioned earlier, the economic downturn has created a tough environment for finding employment. While it’s not easy, you have to stay hopeful. Learn all you can about what employment entails and use the advice given to you here.
As you may have noticed in your job hunt, it is easy to become frustrated. Finding a quality job these days requires tons of hard work. It is important that you stand out from the other candidates as much as possible. Read on to learn what it takes to do this.
Regardless of the job, dress nicely when seeking employment. Potential employers will view a well-dressed prospect as more qualified than someone who doesn’t dress well, regardless of their actual qualifications. You don’t want to overdo it, but you do want to dress appropriately, even if you’re just returning your application and your resume.
Take advantage of the resources of LinkedIn. The Q&A section is a great place to show off your knowledge. This area can also be used to ask questions of others regarding jobs and industries.
You should find out the average pay of people in your industry so you can negotiate the correct pay for yourself. Employers use this as a benchmark, typically based on the budget that they have. While this may happen, you do not want to look desperate in your applications either.
Dress to impress for an interview, even if it is somewhere that does not require you to be well-dressed every day. Even if the position only requires casual dress, you will make more of an initial impression if you look professional during the interview process.
When looking for employment, preparation makes a difference. Your resume should detail all of your qualifications and should be up-to-date. List your accomplishments, and include your educational background. Do not leave out anything that is relevant to your previous employment.
Be sure to present your qualifications for the job clearly in the text of your cover letter. If leadership skills are something they are seeking, mention that you have been in a leadership position. Check the ad and highlight any keywords you can use.
You can get more employees through offering more amenities. Top companies offer things like saunas, gyms and restaurants on the property. This can entice workers to work there. As a result, employers are given the luxury of being extremely picky about whom they choose to hire.
As you can see by now, it is not impossible to get a job. If you show you’re a good candidate, you might be able to get a great job. Keep these tips handy so you can reread them as necessary and use them every day.