Hiring The Right Contractor

When it comes to hiring the right people, there is a lot that goes into it. And no matter what you do, don't make price the deciding factor. Remember that contractors are independent and therefore they will have certain tax rules they will need to abide by. So, when it comes to hiring the right contractor for the job, here are a few tips for you.

Freelancer or Contractor?

There are a few very small differences between what might constitute as a freelancer, and one might constitute as a contractor. When we talk about outsourcing, we are talking about using an outside company to handle otherwise be an in-house job. 

Freelancers are more likely to be hired to do one specific job for a specific project. Although the terms independent contractor, contractor, and freelancers are often used interchangeably, they are still different. 

A contractor is defined as:

“A person or company that undertakes a contract to provide materials or labour to perform a service or do a job.”

Whereas a freelancer typically is defined as: 

“Working for different companies at different times rather than being permanently employed by one company.” 

The easiest way to keep up-to-date with the latest contracting news from QAccounting is to check their website – that way you'll always be in the know as a contractor, or what hiring one means for you. 

Independent Contractor, Not Employee

You're going to make sure that no matter who you hire, they are an independent contractor and not an employee. This will ensure that all of the tax issues are avoided. Any misclassification of new workers can create tax liabilities, penalties, and fines for you and your business. 

Make sure the work you are hiring is an independent contractor and not an employee. Have this written into any agreements and contracts that are drafted. 

Personality

When you are hiring specific people for a specific role, you have the luxury and freedom to ensure that their personality matches the team that they will be working with. This is why you should take the time to meet them multiple times before any contracts are signed.

Credentials

Exactly the same as you would hire any full-time employee is imperative that you check all of their credentials and references before you hire a contractor. If they are truly as good as their CV suggests they will have glowing references, and when you do a quick web search, everything that comes back will be positive too.

Contracts

Before you hire an independent contractor, create agreements and get it signed. This agreement should include details about payments, deliverables, nondisclosure and confidentiality, it should also include details about the requirements how many days a week they should be in the office and how many home working hours are expected. 

And if your contractor is going to be creating intellectual property, make sure the ownership of this property is made clear and to protect your project you might want to consider and non-compete agreement.