Ep. 3 Does My Business Need An Employee or Contractor?

Jan 11, 2023

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This one's for all small business owners who are expanding for the first time!

Today, we cover one of the MOST talked about topics we receive when it comes to planning, hiring, developing, managing, and not getting screwed in building your team: the employee vs. contractor discussion.

The employee vs. contractor discussion is constantly evolving. There is a LOT of grey area, so it's essential to be up to date on the IRS's regulations and those within your state.

As a small business owner, having a mix of employees and contractors can help to create an enriching workplace. But how do you ensure it's still profitable? How can you approach this through a lens of neutrality? Find out some things to consider when expanding your team by tuning into this week's episode!

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In today's episode, we cover:

Reasons why the employee vs. contractor conversation is ongoing
Why having a mix of employees and contractors can be beneficial
The power of having a small team
The danger behind misclassifying an employee and/or contractor
The main differences between an employee vs. a contractor (according to the IRS)
Creating an enriching work environment that evolves over time
Behavioral control
Financial control
Relationships of the parties
The permanency of the relationship
The energy exchange of an employer-employee relationship and an employer-contractor relationship

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RESOURCES:

IRS: Independent Contractor or Employee?
On the blog: The Making of a Team: Contractors vs. Employees
On the blog: The Life Cycle of a Contractor vs. The Life Cycle of an Employee
Take the quiz: Do You Need an Employee or a Contractor?

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