Employee Vs. Contractor

For business owners, they may be torn whether to hire a full-time employee or hire a contractor for specific tasks they want to get done. It is important that you have an idea of the different benefits of these two so that you can create an accurate decision if your business really needs an employee or a contractor.

An employee and a contractor have a lot of differences; that is why it is important for you to know your preferences when it comes to hiring a person. To help you decide, we will discuss the different characteristics of each one of them and what makes them different from the other.

1. Control over work

For employees, it is necessary that you as an employer has the right within the law to direct and control the work of your employee. You also need to set some expectations towards your employee of the things they need to accomplish. The employee will have to work in the business of the employer and the employer if free to manage their business as they see fit. This only means that you have the right to know the employee’s every move when it comes to the job.

On the other hand, in the case of a contractor, you as a payee will also have the right to specify how the services are to be performed. However, there should be a contract specifying the control you want, otherwise, the contractor is free to do what we intend to do, as long as he completes the job. This means that you should be able to specify the things you want control of so that you can exercise that right.

2. Independence

For employees, they need to perform work for you in accordance with the employment contract. You need to do your responsibilities as an employee because they are paying you to do it. On the other hand, for contractors, they only perform the services specified in the contract with you. They will provide additional services only if you have an agreed on certain terms.

3. Payment

For employees, payment is made based on the number of days worked, with pieces of commission if applicable. There is a scheduled date every month in which you can get your salary. As long as you are employed in the business, you will get a salary from them. However, for contractors, they are only paid on the performance of the contract services. After the project is done, there will be no payment that will occur.

4. Ability to delegate

An employee will have to perform the work personally and generally cannot subcontract the work to someone else. They do not have the right to let other people do the job for them. For contractors, they can subcontract or delegate their work for as long it is not written in the contract not to delegate the tasks. The contractor will have the freedom to choose if they seek assistance to other people.

5. Tools and equipment

If you want to hire an employee, you will need to provide for all of their office supplies, tools and equipment in order for them to function. It will be their responsibility to provide these materials. However, for contractors, they are the ones who provides their own tools and equipment. It will not be your responsibility anymore.

Have you chosen which would you prefer to hire? If you like to try hiring a contractor, you can visit Eclat Accountancy Ltd and see the available services they are offering for your business. Visit their website now and see what’s in store for you.