The Pros and Cons of Using Independent Contractors

When your client decides to use independent contractors instead of employees, you need to go over the advantages and disadvantages of choosing the independent contractor route. Before getting into the pros and cons of independent contractors, listen to your client’s reasons for wanting to use them. It may be that your client perceives benefits that aren’t real or that can be achieved through alternate means that don’t involve a risk of misclassification. For example, if a client’s main reason for using an independent contractor is to avoid paying benefits, the client can achieve this result by instead using a temporary employee. But if your client is still interested in going ahead, cover the following points. Advantages of using independent contractors: Client doesn’t pay the usual employer contributions to Federal Unemployment Tax Act (FUTA) (IRC §3301), Federal Insurance Contributions Act (FICA) (IRC §3111), or state unemployment…

Read more detail on Recent Real Estate and Property Law posts –

This entry was posted in Real Estate & Property Law and tagged , , , , . Bookmark the permalink.

Leave a Reply