Are you overloaded at your small business? It might be time to bring on additional help. Business expert Barbara Weltman discusses some of the ins and outs of bringing on additional workers.
Video Transcript
When you need help for your business, you have to decide the best way to handle it. Are you going to bring on more employees? Are you going to outsource, use an independent contractor? Are you gonna use a temporary worker through an agency? Are you gonna use a summer intern? Each of these choices has various implications for you. The first consideration that you have to think about is employee versus independent contractor. This is a hot button issue when it comes to the IRS. You can’t just put a label on a worker, and call them an independent contractor as a means to avoid your payroll responsibilities, when in fact that worker is really your employee. It boils down to a question of control. Essentially, if you can say when, where, and how the work gets done, that worker is your employee and you have payroll responsibilities, regardless of whether you call that person an independent contractor. If you have a short term need for help, it may make sense to just turn to a temp agency, a temporary employment agency, who can supply a worker for you to do a short term job. That worker is the employee of the agency, and the agency is responsible for payroll. You pay the agency a fee based on the work that’s performed for you.
