Contract Employees, Keep Them Happy

Why Contract Employees?

There can be a great benefit to hiring contract employees instead of hiring staff. The best part, less work and responsibility for you, in the business sense.

Seasonal/Specific Hiring

Contract employees or independent contractors are often hired for a specific time or job. Being able to bring on this worker (without needing to find hours for them later) will actually benefit both of you by knowing what the terms are ahead of time. Seasonal workers can hope for a permanent hire position often being laid off or let go after the rush. A contract employee can set up their next job while finishing yours out. Creating a win/win for both.



As a contract employee, they are not added into your required benefit package for employees. Whether an independent contractor or one working for a contracting company, their benefits are coming from another source saving you time on paper work and money of benefits.

Keeping Them Happy

A few things you should do in order to keep contractors happy.

First, Keep their information up to date. End of year is coming and you will be required to send 1099’s in for any contractor making over $600.00(check the IRS website for updated information yearly.) Their personal info needs to be gathered in a W-9 form prior to your bookkeeper being able to send in the 1099’s. The sooner you get those in the sooner the 1099’s can be filed. YES, there is a due date for this! Check the IRS website for yearly dates.

Second, with the savings you are making by not hiring a full time employee, consider paying the contractors a little more. Setting up a great relationship will allow them to keep you in mind again and pass along the opportunity to other contractors you may need later.

Not for Everyone

Contractors are not the answer for ever business. Self access your business and check the IRS website for more details on requirements for contract employees.