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Decoration
Contractor vs Employee

10.May, 2023

Contractor vs Employee

01

Is it better to hire an employee or a contractor?

Contractor vs Employee

Is it better to hire an employee or a contractor?

Given the different types of employee relationships, employee classification has become crucial to the hiring process. As a staffing firm, one of the top questions we get asked is how to determine if someone is an employee or contractor.

If only that were an easy question to answer inside one blog post. As mentioned previously, several laws define the various elements of the employment relationship differently.

For example, Worker’s Compensation Laws vary by state, and each state defines the employment relationship types slightly differently.

The Affordable Care Act is another example where full-time employment is clearly explained, though it’s one of few federal laws that does formally define who is a full-time employee. Further complicating the matter, some laws only apply to organizations of a certain size, and in some states like California, there are different requirements.

 

Add all this to the fact that many federal, state, and local agencies have established unique tests for determining full-time vs. part-time or W2 employee vs. independent contractor status… and it’s no wonder organizations are confused and frustrated by independent contractor compliance.

This is another one of those questions that don’t have a simple answer because the answer is it depends — what works well in one industry doesn’t make sense in another, and what one state allows businesses to do may be illegal in another.

The best staffing strategy for you is one that looks at the risks and benefits of all scenarios and gives you options that meet your organizational goals and talent needs.

At Flexible Staffing Studio, we don’t believe in giving one-size-fits-all advice; we offer strategic, compliant, and flexible HR and staffing solutions customizable to your unique needs.

We know it can be difficult to decide between an employee or contractor. We’re here to help. Fill out the form below and we will reach out to get started.

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