Chapter 11: Your Business And Employees
Small Business Employee Options
All Employees Are Not Created Equal:
 If you are lacking certain skills needed to run a business but do not feel you can afford a full-time employee, you have several other options.
You can consider part-time employees, temporary help, independent contractors, or virtual assistants.
Part-Time Employees
A part-time employee costs less because they work less hours and often do not have the same benefits such as health care that full time employees have.
Additionally, their hours are typically more flexible to fit around the times you most need them.
Temporary Employees
A temporary worker can help you fill in for full time employees on vacation, sick leave, or a leave of absence.
They can also be hired during particularly busy times of the year such as Christmas.
Temporary help is often recruited through a temp agency. These agencies send you workers that have the qualifications you specify.
Independent Contractors
An independent contractor is particularly useful when you need a specific skill or technical knowledge for a special project that's expected to last a relatively short length of time.
Independent contractors work for themselves - they are treated as if they are running their own business.
Thus, you are not the employer of an independent contractor.
Because of this you will not have to pay their income, social security, and Medicare taxes and they are typically not protected by worker's compensation.
Independent contractors are usually paid based on their results rather than by a standard time clock.
Here are some things you can do to help ensure that you or those who work for you qualify for independent contractor status:
 Avoid setting a regular pattern of daily or weekly hours. An independent contractor should have the opportunity to select when and where he will work.- Allow contractors to supply their own tools, supplies, and equipment wherever possible in the performance of the services required.
- Use contractors who normally advertise their services in some manner.
- Allow contractors to hire their own assistants, if necessary.
- Compensate such independent contractors on a per-job basis rather than by hour or by week.
- Always ask for an invoice or statement before paying for any work that has been performed.
- Make checks payable to a company rather than to an individual.
- Do not directly reimburse contractors for any expenses they might have, for gasoline, meals, etc. Such expenses should stand as part of the contractor's set fees.
- Have a written contract to show the independent contractor relationship.
Virtual Assistants
With a virtual office, you may want to consider a Virtual Assistant (VA). A VA is a secretary that has their own virtual office.
They can be hired on an as-needed basis, or for a certain amount each day, week, or month.
The benefit of using a VA is that you only pay for the time worked and not the time waiting for a phone to ring as with traditional secretaries.
In addition to flexible hours and reduced costs, VAs offer a wide range of skills. Some offer basic data entry while others can provide accounting or even web design.
As you can see, there are many different possibilities when it comes to hiring employees. Determining what will work best for you and your company is definitely worth the time and effort.
What's Next
Next In This Guide
 Using the Job Interview to Find the Right Employee for Your Business - Applied But Qualified? Finding an employee that suits your business is very important. With statistics that show 3 out of 4 sales people and 1 out of 4 administrative employees don't work out, understanding the hiring process will help you retain good people.
Previous In This guide
Finding the Right Employees For Your Business - Overwhelmed and All Alone?
Determining If It Time to Hire Employees for Your Small Business. Previous business experience is always a big plus when starting your own business.
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 How To Start A Small Business Everything You Ever Wanted To Know About Starting a Business But Were Afraid To Ask - Table of Contents
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