As your business grows, the reality of needing to bring someone in to help with the work load becomes essential. So you decide to take the step and outsource part of your responsibilities to a contract worker. There are a few things to keep in mind before taking the leap:

1. Before searching for a contract worker, identify the key tasks you need done. Contract workers tend to have very specific skills and being specific in your needs will help you find the perfect fit.
2. Ask for recommendations from other business associates. Since independent contractors generally do not work with any supervision, it is imperative that they are someone that has a proven track record.
3. Check with the IRS and your local state agency to insure your arrangement with the contract worker does not place them in a class as an employee. You may both initially agree to a contract worker agreement, but there are guidelines that specifically state when someone is considered an employee despite what you would like to call the arrangement. Therefore, clarify upfront so you do not owe back payroll taxes and possible penalties and interest. Your accountant should be able to help with your particular situation.
4. Once you have passed the IRS test, a contract should be drafted. It does not have to be lengthy, but should leave both parties clearly understanding the expectations. Possible areas of inclusion:
   • what work are you asking them to do
   • how you will communicate timelines for each project
   • how will they be paid
   • it should contain a non-compete clause
   • if equipment or other property is provided, a statement stating how and when it should be returned upon termination of the contract. Also, specifically, what property was provided to them (include serial or model #’s if applicable)

Independent contractors can be a tremendous resource for a small business. It can provide an option to hire a variety of different skill levels without the overhead of a complete staff. HireMyMom.com has professionals with a variety of skills that can be hired as contractors. Do your homework and find a well qualified person(s). It also allows you to move some of your responsibilities to free up more time to market your company and get it to the next level.
 

Back to Top