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January 29, 2020

Some Thoughts on Hiring Freelancers

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I am currently at a point in my career where I have to either turn away clients or get help. Well, I know that I don't want to turn my clients away, so I guess I have to start looking for help. If you are currently in the same pickle, then you must know how scary and exciting this feels - will we sink or swim? Well, one easy way to outsource help would be to hire a reliable freelancer - but what does this mean?

Giving Up Full Control

For me, this is definitely the biggest obstacle. I love being in control, so giving someone else the reins to do my work really makes my hair stand on end. However, while doing my work within the last couple of months, I started to take note of the things I thought somebody else could do for me and I eventually came up with a fairly acceptable list to outsource.

Full-Time Employee or Freelancer?

This happens to be a huge decision in outsourcing. Should you get a full-time employee or a freelancer? Now, before you can make this decision, you will have to know the difference between them first.

The IRS states that you have to consider three traits when it comes down to it: the type of relationship, the behavioral control and the financial control that you have. Basically, if you can still direct or control what has to be done and how it is done, then you are considered to have hired a full-time employee. However, if you can only control or direct the results of the work, but not the methods and means of getting the results, then you are considered to have hired a freelancer.

Remember: if you hire a freelancer who ends up meeting the requirements of an employee, then you could be liable for back taxes. This is why it would be vital to classify things properly before you start.

The Benefits of Hiring Freelancers

One huge benefit that comes with hiring a freelancer as opposed to a full-time employee would be the simplicity of their reports. After hiring a freelancer, you should ask them to complete a W-9 Form, which will give you the information that you need for their 1099 report in the end. No payroll taxes will be involved here, so you really have nothing to worry about.

Another huge benefit would be the amount of work you can start with. Since freelancers usually have a handful of clients, you can just work with them for a couple of hours every now and then, depending on your work schedule and work flow. This flexibility happens to be vital in the beginning stages of outsourcing.

So, are you psyched about outsourcing work yet? I know I am. In fact, I can't wait to have more free time. That way, I can work on expanding and strengthening my business more. What about you?

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September 3, 2011 - 9:03 am
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