If a company only uses independent contractors, does it require a 'human resources' department?

Question

We are a small company comprised of my boyfriend (the owner), myself, his friend and two contract progammers. This friend fancies themself as the 'hr administrator' although none of us are employees. What's is the right way to go about recruiting/hiring contractors?

Answer 1

In regard to HR, you can argue it either way. You don't have employees, but you do require certain skills from your contractors and you do pay them and prepare related tax documentation. Skill asessment, payroll, and tax documentation are all functions that fall under broadly defined HR (which includes payroll and benefits administration)...

As to the right way to go about recruiting/hiring contractors, you need to make sure you are hiring people with the right skills and are not overpaying for the skill level...

Answer 2

Wow! I'd like that human resource job. Sounds like "the friend" is grasping for a title and with such a small company the responsibilities of that position would be minimal. Of course its up to the owners as to whether that position is necessary at this point in the game. There are some specific distinctions, according to the IRS, between employees and subcontractors. Make sure your HR person, or whoever, knows the differences.

Answer 3

Yhis guy is on an ego trip. No company is required to have a human resources dept or administrato. Since your boyfriend is the owner, it is up to him to choose company policy & how human resource decisions are made. He can make those decisions himself, choose either you or his freind to make them, split up different responsibilities to different people, or let all of you make decisions together.

This could turn out to be a touchy situation for all of you. Good Luck.

Answer 4

ALL Self-employed individuals should have a Legal Plan in place. Some advice and services is better left up to attorneys. Plus with the rate of lawsuits in this country, it smart to be prepared with representation.

My company offers Legal Plans for the Self Employed

What is it?
The Legal Plan for the Self Employed provides benefits specifically designed for professionals' legal needs--owners of nonpublic, for-profit business entities employing 8 or fewer people. The plan also provides a wide array of benefits for common family legal issues.

Benefits Include:
Toll-free telephone consultations with the Provider Law Firm for any subject matter --personal or business

One phone call or letter per subject matter on personal issues per membership year

Three letters written on behalf of the business each month [no more than one per subject]

Document review up to 10 pages on personal subject matters

Review of up to 3 documents (up to 15 pages each) per month on behalf of the business entity

Will preparation and yearly updates at no additional charge; $20 for covered family members

Moving traffic violation assistance

Motor vehicle tragic accident representation
Drivers license reinstatement assistance
Motor vehicle-related personal injury and property damage claims up to $2,000

Civil action and job-related criminal action representation for member and spouse

Up to 50 hours of legal services for IRS audits
Legal Shield: 24-hour access to the Provider Law Firm in case of arrest or detainment

Valuable advice, news, information and consulting services for your business from GoSmallBiz.com

Plus a 25% discount off the Provider Law Firm is standard hourly rate for personal legal matters not specifically covered by the membership, and a 25% discount off the Provider is corporate hourly rate for all business matters not otherwise covered.

The Plan Covers:
non-public
for-profit businesses
8 or fewer employees

The plan also provides personal coverage for the business owner and spouse as well as:
Never-married, dependent children under age 21 living at home
Never-married dependent children under age 18 for whom the member is legal guardian
Never-married, dependent children to age 23 who are full-time students and
Any disabled child, regardless of age, who is chiefly dependent upon the member for support

What is the cost?
The Legal Plan for the Self Employed is available for a monthly membership fee of $49.

Home Based Business Rider
The business and resident address must be the same
Business entity must have three or fewer employees
Must be a for-profit business and not publicly traded
Rider Coverage
Unlimited business telephone consultation
Three business contracts per month
Three business letters per month
Three debt collection letters per month
Trial defense at a 25% discount
Discounted services -- all others at 25% discount
Full GoSmallBiz.com membership

Total Home Business Plan Cost $39.50

For more information contact [e-mail]