What are the cost benefits of hiring independent contractors?
Businesses can usually save money by hiring Independent Contractors instead of employees. Savings are achieved by the employer not having expenses such as: federal payroll taxes, Social Security tax, federal unemployment insurance tax, state unemployment insurance premiums, insurance premiums, employee benefits such as health insurance, paid vacations, sick leave, retirement benefits and life or disability insurance, and office space and equipment. Why has contracting specific projects become popular? By using contractors it provides management flexibility that can not be obtained with employees. You can pay an Independent Contractor to accomplish only a specific task, allowing your business to get specialized expertise for a short period of time. An experienced contractor can be productive immediately, eliminating the time and expense involved in training employees for shorter term projects.
