Is it better to hire a consultant or to pay an employee if their wages are the same?

Question

-I own a small business and this will be my first employee/consultant
-This person will be working no more than 35 hours/week

Answer 1

A few things to consider:

1) Benefits
As a "consultant" (generally referred to as a contractor in this context) there are no benefits associated with the job. In fact you could be facing legal trouble if you DO provide benefits to a contractor because that is one of the distinguishing factors between employee v. contractor. So if you are seeking to minimize any benefit expense this would be a plus in the "contractor" column.

2) Taxes
You can save money on employment taxes if you hire a contractor. You would issue them a "1099" at the end of the year for all funds that you paid to them instead of a W-2 and it's up to the contractor to take care of all taxes to the government. If they were your employee you would need to pay Social Security and Medicare taxes (together referred to as FICA, of which the employer pays 7.65%) and federal unemployment tax. Depending on your state you may have state unemployment tax as well.

3) Employment at Will
This may or may not be an issue depending on which state you work. In Georgia employers may "fire at will" so this is a non-issue but some states have requirements before you can terminate employment. If they are a consultant / contractor you don't fire them, you simply don't have them do any more work for you!

This is a two-way street however, the contract employee is less likely to give two-weeks' notice (especially if they find a position offering vacation, health insurance, etc).

4) Hourly rate
This is really where the consultant / contractor makes up for all of the shortcomings above. In my field for example (IT Consulting) I've seen a salary of $75,000 /year offered for a position that pays $80 /hour as a contractor. If you annualize the $80 /hour that comes to over $160,000 /year!

Of course if the contractor is out sick for two days they make zero. While everybody else is enjoying a four-day weekend at Thanksgiving the contractor is thinking about how much less they'll be making that week, etc.

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As you can see there are a lot of things to consider. Remember that in either case you should consult an accountant to understand the tax implications of either approach.

Answer 2

you need to deliver 2 issues on the table of the listening to: The historic past declare on the father that fraudulent on different states. So If the daughter claimed she replaced right into a worker, YOU call for AND REQUEST HER evidence head to head , you will possibly be able to deliver your witness with you. you in basic terms mentioned if she declare she replaced right into a worker. deliver herself in with proofs and you pays her instantaneous. I guess she would be in a position to no longer take place. you have no longer something to lose besides Or the final of element, you could counter declare the father if the father take place. i might suprise they take place

Answer 3

From a purely economic standpoint, a consultant. You pay for their expertise, not their 401K, medical, dental and life insurance. Plus you can "fire" them at any time for any reason...

Answer 4

if u are looking for a long term 2yrs + , hire a full timer with less exp. or else get a consultant with high exp .

Answer 5

CONSULTANT.
YOU MIGHT NEED TO PAY A LITTLE MORE THOUGH

Answer 6

consultants there easier to fire