In this age of digital communication, it is easier than ever before to hire freelancers. If you run a small business, utilizing freelance workers can help you to grow your company. Here are four considerations and tips to help you determine whether you should hire freelancers.
Gaining Access to Specialized Talent
Freelancers can be very beneficial to small businesses in a number of ways, but the key is knowing when to hire a freelancer. While you can get freelance workers to handle almost any task, the best time to utilize them is when you need specialized talent. A freelancer can provide you with a professional skill set that your regular employees do not have. For instance, most small businesses hire freelance web developers to create websites and advertising professionals to create logos and slogans. When you need a specialized service that is outside the scope of your business acumen, it is a good idea to hire a freelance professional.
Completing Tax Forms
You should consider that there will be additional paperwork to do when you hire freelancers. Firstly, you need to draw up a contract to make sure both your company and the freelancer are protected. Secondly, you will need to complete 1099-NEC forms. As of the 2020 tax year, the form has been used to separate the reporting of payments to non-employees from Form 1099-MISC. So, when you hire a freelancer who meets certain requirements, you need to complete a 1099-NEC form. While contracts can take a while to construct, thankfully, customized and accurate 1099 NEC forms can be obtained in just a few minutes when you use an online service.
Freelancers Are More Affordable in the Long Run
If you hire a new full-time or part-time employee, you not only have to pay a regular wage. You may also need more space in your office and more equipment, which in turn will create more outgoings. When you hire a freelancer, you do not have to worry about affording such overheads. A freelancer will work remotely and use his or her own equipment. So, even if the hourly rate of a freelancer is higher than an employee’s rate, you are not only paying extra for specialized skills, you are also cutting costs on overheads. Furthermore, the cost of hiring a new employee can be pretty expensive when you consider all of the steps involved, from recruiting to interviewing to onboarding. You also have to pay withholdings and deductions, such as for Medicare and Social Security, from employee salaries. On the other hand, you only need to pay freelancers as and when needed. In addition, if you are considering hiring an agency for certain projects, it is usually much cheaper to hire the services of an independent freelancer.
Growing Your Small Business
The above considerations and tips should help you to make an informed decision as to whether you should hire a freelancer and when you should hire one. When you select freelancers for the right tasks, you can rapidly grow your small business. For instance, when you onboard professionals who utilize UX and UI design methods, your website can gain more visitors and conversions, and your business can rank higher on search engines like Google. Another example is getting a branding professional on board. When you have an expert at the helm of your business’s look and identity, your brand recognition will increase. And if you run a seasonal business you could simply hire freelancers so that you do not have to pay out salaries and payroll taxes all year round. In turn, you would save costs and could invest those savings in upping your marketing game to grow your business even more.
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