Employer Decision: Independent Contractor Versus Employee?

Carol Amegatcher

Carol Amegatcher

3 min read

2021-04-13T

Employer Decision: Independent Contractor Versus Employee?

When we need a specific job or regular service, we always look for the right method for this job. We know, it’s hard to decide, but we have developed a formula for it. Before starting a business relationship, we go back to the beginning and look at the basics of this business relationship, and we consider our needs as they were before they became a problem and make the decision accordingly.

Therefore, while making this decision, we must first determine our needs correctly without considering the distinction between independent contractors and employees. In this context, we will give you the meanings of the terms based on variations and move away from the usual simple definitions.

Need-based Decision Mechanism

The basis for the need for service will give us the right prescription. Because working with an independent contractor or employee will have completely different results. Therefore, it is necessary to start right in order not to reach incorrect results.

Variation 1: If the service we need has a structure that requires high quality and experience, we make our priority with the independent contractor preference. Of course, there are factors that change this situation. For example, if this service, which requires high quality and experience, will maintain its continuity for a long time and if we have the financial strength to hire someone with such high quality and experience full-time, this preference may change. Because people who provide a service that requires high quality and experience will have high full-time wage demands. In addition, hiring services as an independent contractor will cost a relatively affordable price. Because in this case, this person will have the right and chance to serve not only you but also other people independently.

Variation 2: If the service we need is essential for the continuation of one of the fundamental building blocks of the company, then the decision will be to work as an employee. Because the continuity of a basic building block of the company is in conflict with a working order without a control mechanism. Independent contractors cannot be audited with their independence from their names and are not called to work whenever needed. Because they do not have a working hour, they do not have to answer every call as long as they do the job they serve.

Variation 3: If the service we need will only support a certain building block of the company, that is, if the presence or absence of this service does not affect the way the company’s main business is done, then the choice should be in the direction of an independent contractor. Because the service needed is an order that will not be sudden and urgent, and there is no need for timing. Therefore, choosing to work as an independent contractor in this variation will prevent working with a worker at high costs and wasting the valuable hours of that person.

Variations like these can be multiplied and diversified. Let’s find the solutions suitable for your needs and increase the variations. Please use our independent contractor guide to get any of your questions answered: Independent Contractors Guide.

See our list of payroll and HR tools to help you hiring, manage, and stay compliant with a remote workforce.

Carol Amegatcher
Written by Carol Amegatcher

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