Advantages and disadvantages of hiring employees or using independent contractors

Many small-business owners believe that bringing family members and close friends into their company allow for create an especially harmonious group of employees. Doing so offers limited vantages, but also smooth operations of the company may be compromised. Some small business owners use both(prenominal) employees and contractors depending on the nature of the make water and preference.
Hiring independent contractors, helps avoid lavishly cost of providing employee gains and cedeing workers compensation, unemployment premiums, and federal payroll taxes. Contractors usually pass on all equipment necessary to perform their work, work only on occasion for a client, work for many clients at a time, and be possessed of a separate place of business. Contractors argon usually employ on a project-to-project basis and only have to pay them for hours worked. There are no overhead expenses as they work for as-needed basis (NC Journal for Women, 2003). Loyalty, dependability and quality of work from contractors cigarette are debat fitting issues. The major disadvantage for hiring contractor is that they faculty be buys working on another clients project when you need them. The contractors are flexible and that could be an advantage or disadvantage to the client.
The advantages of working with employees are numerous.



Having a dependable, competent and knowledgeable person in your office on a daily basis can be an asset. For some, just the benefit of knowing the phones will not go without being answered is deserving having a full-time employee. Full-time employees also are able to respond to projects that require same-day turnaround (NC Journal of Women, 2003). The disadvantage of hiring employees is with having a constant cash flow for payroll on a timely basis. For a company that is a service oriented, employees are the biggest cost. Payroll has to be processed whether there is business or not, the company is busy or not. Employees can also muff lot of time with lunches, personal calls and chit chatting....If you want to kick the bucket a full essay, order it on our website: Orderessay



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