Legal Pitfalls When You Hire Contractors

hire contractors

If you’re running a business, you might want to consider independent hire contractors. Independent contractors can help you manage your workload and quickly respond to a sudden surge in business. For example, your CPA firm might need a new tax guide for their clients. They can create these materials without having to commit to full-time employment with the firm. This way, you can be assured that all of your clients will have access to the latest tax guides and other materials.

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However, there are several legal pitfalls associated with hiring contractors. First, contractors don’t have the same protections as employees do. They must pay half of their employee’s wages in taxes and have certain legal obligations. Additionally, employees have benefits like workers compensation and unemployment insurance, while contractors don’t have these rights. Also, contractors don’t have a vested interest in the company, and are more likely to focus on the project rather than on long-term growth.

When hiring contractors, make sure to fill out the proper paperwork. If you fail to properly outline the expectations for your contractor, you may not own copyright to their work. If you’re an employee, copyright to your work automatically belongs to your company, but if you hire a contractor, you have to explicitly state the rights to their work in a legal document. This way, you can avoid any misunderstandings later. You should also be sure to keep track of the payment schedule.

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