Small Business Hiring Full-time Part-time Intern Or Contractor
Hiring the first employee for your small business, like my husband and I did for our small business, is an bright move forward, but only after answering many questions about the need for befriend and the financial obligations that it brings. For us, we outlined potential tasks an employee would perform. Then, we evaluated the need for a full time, part time, or intern employee, or an independent contractor to perform those tasks. Knowing the advantages and disadvantages of each type of paid help can fabricate the decision process easier.
Full-time employee. Full-time employees work 30 to 40 hours a week, usually Monday through Friday. They may be salaried employees or be paid by the hour. An advantage of hiring a full-time employee is that more people seek full time jobs than allotment time jobs, so the small business owner will have more potential hires from which to choose. When hiring a full-time employee, business owners will need to deal with payroll taxes and added expenses in the execute of benefits, like paid holiday or personal leave, or health insurance assistance.
Part-time employee. A part-time employee typically works less than 30 hours a week and is usually paid by the hour. When hiring a part-time employee, business owners will need to cover payroll taxes and possibly benefits. The turnover rate may be higher for part-time employees versus full-time employees in general, but can be higher because of employees who get a part-time residence only until they earn a full-time position that could offer more job security or better benefits.
Intern. Individuals seeking to gain job knowledge in a modern field are often called interns. Interns may be college students seeking full-time employment objective during summer breaks or could be new college graduates. New to the work force, interns may be paid minimum wage, which can be advantageous. The small business owner will need to cover payroll taxes and benefits. The intern’s lack of experience may require more supervision than a skilled worker.
Independent contractor. An independent contractor is not an employee, so there are no payroll taxes or benefits for the small business owner to cover. An independent contractor may bill the business owner by the task or by the hour and their pay is usually higher than what a business owner would pay an employee doing the same task.
You might also like to read: When a Small Business Should Hire Employees
Sources: Bureau of Labor Statistics: Comparing benefit costs for full- and part-time workers; University of Missouri: Independent Contractor vs. Employee
There are no posts related to Small Business Hiring Full-time Part-time Intern Or Contractor.
Related Posts
Filed under Health Insurance Self Employed Taxes by on Dec 6th, 2011. 