Category Archives: Independent Contractors

3 Proven Tactics to Grow Your Small Business with LinkedIn

This article has been brought to you courtesy of Linkedin. 

There are over 30 million small businesses in the United States, but only half of them will make it past five years. Ensure your small business is in the successful half and capitalize on how LinkedIn can evolve your business. Here are three ways to grow your business using LinkedIn:

Create & Promote a LinkedIn Company Page

 LinkedIn members are 50% more likely to buy once they’ve engaged with your business on LinkedIn. But they can’t connect with you if you don’t have a LinkedIn Company Page. Personal profiles don’t have the same marketing, advertising, and recruiting features as Company Pages, making them less effective at promoting your business. As you create your page, think about the kind of impression you want to create among potential customers and employees.  Continue reading

Ask SCORE: How can I win in the gig economy?

The “gig economy” — the market for individuals providing services or working on projects on a freelance on-demand or short-term contract basis — has been a growing trend. While there are no official gig economy statistics available to measure its prominence, we can make some assumptions about its increasing popularity based on other available data. 

According to information reported by the United States Census Bureau, the number of non-employer businesses, the group of individuals most likely to work on gig basis,  was 24,331,403 in 2015. That’s 10% more than the 22,110,628 non-employer businesses in 2010.

And opportunity abounds for independent professionals who take on gig assignments. Many businesses outsource work to independent contractors and freelancers when their staffs are overwhelmed and to avoid the costs of benefits and ongoing payroll that come with hiring new employees.   Continue reading

Ask SCORE: Is a worker an employee or an independent contractor?

by Joe Heinrich and Guy Towle, SCORE Volunteers

As mentors to SCORE clients, we are often asked by our clients, “Should I hire this person as an employee or engage them as an independent contractor to do the work I have for them?” Often, our immediate response is to suggest the least costly alternative, which is to engage the person as an independent contractor as then the client can avoid all the payroll taxes associated with an employee.

However, this advice does not take into consideration the very restrictive State of Washington statutes as they pertain to the determination of an employee vs. an independent contractor. So, let’s take a look at the applicable law.  Continue reading

Independent Contractor as defined by the IRS.

People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public are generally independent contractors. However, whether these people are independent contractors or employees depends on the facts in each case. The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax.

Continue reading

Ask SCORE: Should I work with contractors or hire employees for my small business?

As your small business grows, you will reach a point when you can’t do everything by yourself. To get the help you need, you can choose to outsource various tasks to independent contractors or hire employees and delegate the work.

To decide which will make the most sense for you and your company, it’s important to understand some of the key differences between working with independent contractors and having employees on staff.

Years ago, I owned a “virtual” marketing services firm. I worked with a group of talented creative people — designers, illustrators, photographers, and others. I asked them to work on projects for my clients, and they often asked me to work on projects for their clients. We all had licensed businesses and we enjoyed working with each other.   Continue reading

Ask SCORE: What should I do before I hire my first employee?

Hiring employees for your small business can help lighten your workload. But it also creates the need to manage something you didn’t need to worry about when you were handling all aspects of your business by yourself:

Payroll.

Even if you have just one employee, you need to do payroll accurately and in compliance with all legal and regulatory responsibilities. If you don’t, you could incur costly penalties from the Internal Revenue Service.

Before you hire your first employee and put processes in place to handle payroll, make sure you pay attention to two important details.  Continue reading

Will your small business have employees?

Washington State’s Department of Labor & Industries answers the top 20 small business questions. For example:

  1. I’m hiring employees for the first time. What do I need to do?
  2. Can I just hire independent contractors? They’re easier than employees.
  3. Which government permits, licenses and tax registrations do I need?
  4. I own a business. Am I required to have workers’ comp coverage on myself?
  5. What can I deduct from my employee’s paycheck?
  6. What do I do if I can’t pay my workers’ compensation bill?

You will find the answers here.