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Advantages and Disadvantages of Hiring Independent Contractors

When considering hiring an independent contractor, a Costa Mesa employment attorney can explain the advantages and disadvantages of making this decision. There are important legal considerations to keep in mind.

Advantages of Hiring Independent Contractors

One of the most significant advantages to hiring an independent contractor is that it is usually less expensive than hiring an employee. This is because employers generally do not need to pay independent contractors’ Social Security and Medicare taxes, unemployment compensation insurance or workers’ compensation insurance. Additionally, they do not usually need to provide for equipment or office space for independent contractors. Employers also do not have to worry about providing benefits to independent contractors.

Another advantage to hiring an independent contractor is that it allows employers to increase their staff when necessary without the permanent commitment. This way, more people can help during busy seasons without the hassle associated with layoffs during slow times.

Disadvantages of Hiring Independent Contractors

While there are several advantages of hiring a contractor, a Costa Mesa employment attorney can explain that there are some disadvantages. For example, employers generally have less control over their independent contractors.

Another disadvantage is that your ability to terminate an independent contractor is more difficult and based on your written agreement. This is different the at-will employment relationship that exists in most employee/employer relationship.

Another potential drawback is that hiring independent contractors may trigger an audit by government agencies that may be concerned with you mis-classifying an employee.

Legal Assistance

For more information on the pros and cons of hiring independent contractors, contact a Costa Mesa employment lawyer from Daily Aljian LLP.

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