Bizs Turn To Independent Contractors
As the recession forces small businesses across the country to cut expenses, some are making a dramatic shift — they’re laying off employees and using independent contractors instead.
Back in 2006, Ron Gold had only full-time employees in his advertising agency, but business began to slip and he began using freelancers.
Last year, he closed the agency and started a marketing services firm, using only independent contractors — some of whom used to be former staffers.
There are many benefits to hiring contractors rather than employees, and not just during a recession. Businesses don’t have to pay for benefits and don’t owe the government payroll taxes for contractors. When there’s less work to be done, the contractor isn’t paid, unlike the employee who draws a regular salary.
Independent contractors must by law be treated differently from employees. An owner doesn’t have what the IRS calls the right of control over contractors — for example, the place where they work, the hours they put in on a project, the tools they use and how much supervision there is.
Photo by tatlici.
Shane Hudson on February 2nd, 2009 9:58 am
Being a freelancer is very dangerous. But it can be worth it! I for one prefer to be my own boss.
Jaclyn on February 6th, 2009 2:15 pm
Independant contractors can be a very good resource for many companies. it does help to save a lot of money since if they don’t work, they don’t get paid where like the article said…a regular employee even during slow times and slow day’s as long as they are in the office…get a pay check.
tahnoonn on February 6th, 2009 9:59 pm
Anyone interested i buying a commercial property in united arab emirates,in fujeirah,space is 25 thousand square foot and it is a freehold property,and you can build upto 16 floor .It can be build as residence or hotel.If interested or know an investor who would like to buy ,please do email me at tahnoonesmail@yahoo.com
cassy on February 9th, 2009 11:40 pm
there is nothing wrong about being a independent contrator, the important is you love what your are doing and you enjoy it,hard work and knowledge on the work that you are into will bring you to your success!
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