6 Tips to Manage Contract Workers

1. Describe the job or project clearly.
2. Throw contract workers some recognition.
3. Maintain communication — positive and negative.
4. Find the pay structure that works best for your business.
5. Utilize all of the contractor’s skills.
6. Deliver when you say you’ll deliver.

What is a contracted employee?

What are contract workers? A contract worker, also known as an independent contractor or 1099 employee (based on the 1099 tax form they receive), is an individual who enters into a contractual agreement with a business in order to provide a service in exchange for a fee.

How do I get contract employees?

Look for temporary workers where you find permanent employees:

1. Online job sites, including indeed.com, careerbuilder.com and monster.com.
2. Industry-specific job sites, including mediabistro.com (for creative and media) and dice.com (for technology).
3. Social media sites, including linkedin.com.

Is a contracted employee considered self employed?

The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax. If you are an independent contractor, you are self-employed. However, your earnings as an employee may be subject to FICA (Social Security tax and Medicare) and income tax withholding.

Is it better to have contract employees or full time employees?

For a small business, working with contracted and full-time employees can have advantages for both the employer as well as employees. What are the differences between contract employees and full-time workers?

When is a contract employee not right for your business?

Contract workers might not be right for your business if you have to maintain specific business hours and when you need workers to change shifts regularly. You also don’t have the flexibility to upskill and retrain contractors, or to ask them to do different tasks than the ones you hired them to do.

Can a company save time by hiring a contract employee?

You don’t have to pay taxes and social security and offer benefits when you hire a contract worker. You can save time, as contract workers require a lot less admin, for example when it comes to creating paychecks. Another area where you can save time is in the hiring process. Recruiting a full-time employee takes a long time.

How long does it take to hire a contract employee?

In contrast, you can hire a contract worker within days, especially if you already have some contacts or people who have worked for you before. If you want to keep on top of how much money you’re saving (or spending) by hiring contract employees, you can track this in certain HR solutions.