In today’s business and financial landscape being an employer can sometimes be more taxing than profitable! That’s why many business owners (small and large) are taking advantage of “shared employee” arrangements or third party employees. Utilizing the many staffing agencies, third party vendors, and independent contractors to help you run your business (typically through temporary work) can be a great way to save money. However using third party vendors or independent contractors instead of traditional employees for some of your work can get tricky. It’s a little more fraught with legal complications than the traditional route.However if you’re looking to avoid the many economic and sometimes administrative perils of hiring traditional employees a “shared employee” arrangement may be right for you!
U.S. businesses currently engage millions of staffing agency and temp workers to help build their business. This doesn’t even include subcontracted service providers which makes up a surprising portion of the nation’s workforce. Of course like almost anything pertaining to business there is risk involved. Under the Fair Labor Standards Act there is joint employer liability to keep in mind. When employing someone that comes through a staffing or temporary workers agency you will be (together with the agency or traditional employer) liable for wages including overtime. The Fair Labor Standards Act or FLSA uses a pretty broad definition of employer leaving it up to various federal circuits to research each case while keeping a key group of factors in mind. These factors include whether or not the employer has set rates and manner of payment as well as whether or not the employer supervised the worker in any capacity.
Some of the benefits of hiring independent contractors includes saving money. Perhaps the biggest motivation behind hiring independent contractors. You’ll save money by not having to treat the contractor as a traditional employee. You’ll save money by not having to pay for the various expenses you typically have to pay for when hiring a traditional employee including benefits, employer-provided equipment, as well as required wage taxes and insurances. Now that you’ve save yourself some money you’ll be able to afford high quality professional styles from Allen Edmonds. There you’ll find amazing deals on premium clothing, shoes, and accessories all appropriate for cultivating a look fit for a high powered professional. Making qualified decisions that benefit your business is only part of the job, you need to look the part too.
Aside from saving money with independent contractors you also get the advantage of flexibility. You’ll be able to hire and staff your business according to it’s needs easier than ever before! Seasonal businesses and retailers benefit highly from this staffing flexibility. Of course there’s also the added benefit of reducing liabilities. This goes hand in hand with saving money but it also saves time and resources. Resources that would better be placed into money making ventures or projects. Of course while independent contractors reduce your business’ level of vulnerability to liability it can be fraught with difficult legal and tax related manners. In these cases tax preparation help from companies like H&R Block can be incredibly helpful.
For companies like Lyft, independent contractors have been incredibly successful and a key component to their business model as well. When deciding what’s right for your company be sure to look at the advantages and disadvantages before making your decision.