4 benefits of hiring a 1099 employee
According to the U.S. Department of Labor, about 10% of the American workforce currently consists of independent contractors. From freelance writers to ridesharing drivers, there are independent contractors working in many different industries these days.
If your company is looking to fill a position at the moment, you may want to consider doing it with an independent contractor—also known as a 1099 employee—as opposed to someone who works for you full-time. There are lots of benefits that come along with hiring 1099 employees.
Take a look at four of the top 1099 employee benefits below.
1. Saves Money
When you hire a full-time employee to work for your company, it often comes at a high cost. Outside of paying them to do their job, you also have to pay for everything from workers’ compensation insurance to office supplies for them.
This won’t be the case with a 1099 employee. The only thing you’ll need to make sure you have is a paystub generator to pay them. Otherwise, you won’t have to put out much money at all for them to provide you with the services you need from her.
2. Allows for Flexibility
Are you only going to need to hire someone to fill a position for a specific period of time? You’ll be better off making this a 1099 position rather than making it a full-time position.
This way, you’ll be able to bring a 1099 employee in when you need him and then send him home when whatever job you need done is completed. You’ll love the flexibility that your company gets with a 1099 contract position.
3. Reduces Legal Risks
Under normal circumstances, companies have to invest in insurance policies for their full-time employees. But when they have 1099 employees on their payroll, those employees will often be required to fend for themselves as far as insurance is concerned.
This will make a 1099 employee less of a legal risk than a full-time employee for your company. It could potentially help your company steer clear of getting involved in any costly legal battles.
4. Provides Specialized Services
When your company hires a 1099 employee, you’ll often hire him or her to do a very specific job. You’ll bring him on board to help put together a marketing campaign for your company or to take on another task that your current employees aren’t able to carry out.
This person might not be a great candidate for any of the full-time positions that you have available. But her skill set would make her an ideal choice to provide your company with specialized services that will benefit you in a big way.
Hire a 1099 Employee to Work for Your Company
It’s not a good idea for your company to fill every position that you have open with a 1099 employee. Most 1099 employees aren’t as loyal to the companies as full-time employees.
But as you’ve seen here, there are many benefits of hiring one or two 1099 employees to take on special projects for your company. You should consider doing it today to see how these employees can help your business.
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