Your small business can benefit from the assistance of an independent contractor. This worker is self-employed and paid through a contract to complete a task or project for your company. Here are the ways this type of work arrangement helps your small business.

Gives You the Expertise You Need

An independent contractor is a specialist in a specific field. Often they have years of experience and proven results of their work to show they have the skills to do the job. You essentially pay the contractor to use their talent and professional knowledge to complete a project for your company. This expertise is beneficial when you need highly technical work done.

Saves the Company Money

Using a contractor is less expensive than hiring an employee in most cases. Hiring for a full-time position involves the cost of paying for a recruiter to find the right person, providing training to the new hire and the ongoing expense of the salary and benefits. With an independent contractor, you pay the agreed amount for the work.

Fills in the Gaps

Outsourcing work is helpful if your business is cyclical with busy and slow seasons. You can staff up with contractors when extra help is needed and end the contracts when the slow season kicks in. It is also helpful to use a temporary worker to fill in for an employee out for an extended medical or family leave.

Allows for Business Growth

As your company grows and invests in new business ventures, it is beneficial for you to contract with top talent to work on the new project. The independent contractor can start immediately and knows the steps needed to efficiently and accurately do the work. In addition, your full-time employees can experience on-the-job training by working alongside the contractor to learn their new roles.

Provides Tax Advantages

Your only tax requirement for your temporary worker is to file a 1099 tax form to report their earnings if higher than $600 for the year. You do not pay payroll, Social Security or Medicare taxes for an independent contractor as you would for an employee.

Enables You To Make a Hiring Decision

Contracting with a temporary worker for a position in your business allows you to assess the person’s skill set and fit within your company. You can offer a permanent position at any time.

Hiring an independent contractor offers several benefits to your small business. Consider this type of work arrangement whenever the need arises.