Starting Your Own Company? Consider a Payroll Service

Ms. Career Girl

If you are starting your own business, and hiring employees or contractors, you may be tempted to do the payroll yourself. Even if you’re a small business, with fewer than 20 employees or contractors, you can still save money by outsourcing your payroll.

why are contractors treated like second-class citizens, boss enters without knocking, and more

Ask A Manager

Why do some people look down on contractors and freelancers? I’m a freelance writer contracting at a large company, and I’ve noticed that some people tend to look down on contractors and freelancers. The row of cubicles that my fellow freelancers and I sit in right now is jokingly referred to as “Contractor’s Row.” In some companies there’s a culture where contractors are indeed seen as second-class citizens.

2017 52

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employee clique is causing problems, employer will pay me more if I work as a contractor, and more

Ask A Manager

Employer will pay me more if I work as a contractor. I asked him to expand upon this, and he said that if I wanted to waive all benefits, including leave, and become a 1099 contractor, they could meet $65k. They can’t just decide to make you a 1099 contractor without restructuring the job; there are legal restrictions on how contractors must be treated. It’s five answers to five questions. Here we go…. An employee clique is causing problems.

2015 68

How the Paycheck Protection Plan Can Help Save Your Business

Evil HR Lady

This allows you to borrow based on your payroll, rent, and utility needs. Payroll costs definition. ” If Reilly’s interpretation is correct (and I think it is), it opens up coverage to contractors and independent business owners.

2020 217

More Women Are Working than Men

Evil HR Lady

This is also payroll growth and doesn’t account for the people (men and women) who work as independent contractors or who are self-employed or who work on farms. percent of the workforce in the United States is now female, surpassing men for the first time since the Great Recession, ten years ago. That recession was led by the male-heavy industries of construction and manufacturing.

2020 122

short answer Saturday: 6 short answers to 6 short questions

Ask A Manager

Here we go… Figuring out pay as a contractor I have never worked as a contractor but was contacted about a potential contract job and asked to provide my pay requirements plus gas cost. Reply Charles March 20, 2011 at 12:59 pm “Figuring out pay as a contractor.&#

2011 71

Entrepreneurs: Looking to Hire? Avoid These 3 Hiring Mistakes

Ms. Career Girl

Perhaps there is business expertise that you don’t have; but a contractor may better suit your needs than a full-time employee. It’s important to be realistic about your cash flow and work needs before adding someone to the payroll.

2020 141

Is Your Small Business Breaking Labor Laws? 5 Mistakes to Avoid

Jobacle

Classifying Employees as Independent Contractors. Some small business owners think it’ll be easier and cheaper to classify their employees as independent contractors, so they don’t have to pay payroll taxes or cover benefits like disability and paid leave.

2019 141

can I put running my household on my resume?

Ask A Manager

On the fiscal side, I create a detailed annual budget, send out monthly income/spending/asset reports, pay bills and payroll (each household member has a personal bank account separate from the household accounts and gets a weekly allowance), and approve large expenses.

2020 87

How to Maintain Your Work-Life Balance

Ms. Career Girl

This may require supplementary working capital to help you manage cash flow as your onboard new team member and need to stay on top of payroll. Full-time hires are typically more expensive than most contractors.

2018 205

Unemployment Fell to 4.6% in November

Workology

The November jobs report is here and the news is good: the US economy added 178,000 nonfarm payroll jobs in November and the unemployment rate has dipped to 4.6%, its lowest rate since August 2007. Construction: +19,000 (+15,000 Residential Specialty Trade Contractors).

2016 120

The Frightening Fact New Grads Should Know Before Entering The Workforce

Career Realism

Contract jobs rose in popularity in the last 15 years when employers realized they could save a substantial amount of money on payroll, employment taxes, and benefits by hiring contractors.

2014 111

my boss makes me wear her clothes, eat her food, and say I’m grateful for my job

Ask A Manager

As for her treating you as a 1099 contractor rather than an employee (and thus not paying your payroll taxes ), that’s illegal. And really unfair to you, since it means you’re now responsible for the payroll taxes and Social Security she should have been been paying on your behalf. (By If she’s been paying you as a contractor this whole time, you should have seen it on your pay stubs when no taxes were coming out.).

2019 88

How to Align Cloud Tech to Elevate HR’s Strategic Business

Workology

I outsource housework to my housekeeper once a week, a contractor to help with our master bedroom remodel and the lawn service to tackle the jungle that is my backyard. TriNet can assist you with timekeeping, expense management, payroll, performance management and so much more.

2014 155

my client constantly pesters me and micromanages my every move

Ask A Manager

A reader writes: I work as a contractor for a lice-removal company (I’m a recruiter). I’ve clarified my position as a contractor twice (no set hours, will communicate about the work I’m doing and when I’m doing it, other commitments mean I am not always available for immediate response) and the client reacted with anger both times. To determine who qualifies as a contractor, the IRS looks at the factors described here.

2015 57

Why You Should Diversify Your HR Systems

Workology

You worked with your recruiters, outside contractors, and the marketing people and you are ready to go live. I have been in this industry pushing 15 years and I have yet to come across one system that delivers to a high standard in all areas (HCM, ATS, Payroll, Training, etc…).

2014 126

becoming a receptionist against my will, baking for one employee but not the other, and more

Ask A Manager

If you switch from contractor to employee, should your pay go down? It’s actually really common for people to charge more when they’re independent contractors. It’s five answers to five questions. Here we go…. I think I’m about to become a receptionist against my will.

2020 57

Talent Activation is the 21st Century's Talent Management

Water Cooler Wisdom

Talent activation takes into account everyone in today’s talent economy, including FTEs, contractors, freelancers, vendors, partners, interns, site visitors, and seasonal workers. Talent management involves managing the hire-to-payroll-to-benefits funnel. People are your organization’s greatest asset and most expensive resource. We recognize the importance of employee engagement and do our best to measure and boost it, and yet engagement is not always in a company’s control.

2017 40

why it’s complicated for your employer to let you work from another state

Ask A Manager

My boss says that to work remotely, I’d need to become a contractor. My boss is indicating because our company is not registered to do business in this other state I would have to convert to a contractor. However, you can’t just convert to independent contractor status without changing some fundamental things about your role. According to a coworker, my boss does not want to pay the increased rates and is considering having me work as a contractor in order to avoid that.

coworker wants to mother me, telling an employee he’s not welcome at our holiday party, and more

Ask A Manager

I’m a contractor but my client wants to do professional development with me. Yeah, that’s not appropriate if you’re a freelancer / independent contractor. To legally treat you as an independent contractor, an employer needs to meet certain standards, described here , which are intended to preserve a real distinction between employees and contractors. It’s five answers to five questions. Here we go…. Coworker sees herself as a mother figure.

2019 60

SR: 2 Pay Questions and an Unemployment Problem

Evil HR Lady

The company considered me to be an independent contractor, but after reading about the criteria of independent contractor vs. employee, I think I was an employee. I am the submitter of the question regarding unemployment and employee vs independent contractor status.

2010 141

Moving Out

Evil HR Lady

She was put on the payroll, and told she would be getting somewhere around 20-25 dollars out of the paycheck and that the rest would go to room and board. She would quit the job, seeing as she is on the actual payroll, just not receiving the check (they pick it up, she never even sees it) but they have threatened to kick her out before. You say that they put her on "payroll" and that the father/step-mother pick up the pay checks.

2010 100

Moving Out

Evil HR Lady

She was put on the payroll, and told she would be getting somewhere around 20-25 dollars out of the paycheck and that the rest would go to room and board. She would quit the job, seeing as she is on the actual payroll, just not receiving the check (they pick it up, she never even sees it) but they have threatened to kick her out before. You say that they put her on "payroll" and that the father/step-mother pick up the pay checks.

2010 100

think you want to work for yourself? here’s what you should consider.

Ask A Manager

There can be huge perks to being a full-time independent contractor: You set your own schedule. As an independent contractor, you’ll be responsible for paying both halves – as well as a self-employment tax! And payroll taxes will not be deducted from your paychecks, which means that you need to be disciplined about setting aside cash regularly and making the quarterly payments the IRS requires. Typically for contractors, if you don’t work, you don’t get paid.

1099 48

How to Manage In-House & Virtual Teams at Work

Workology

This number is also growing in numbers as companies can adjust their payroll expenses without a reduction in force or layoff. This makes management of contractors easier and more efficient. The days of everyone working in the same place at the same time are gone.

2012 130

5 Tips For Starting A New Business On A Shoestring Budget

Career Realism

Having an employee on the payroll is probably not a good idea if you have tight budget. When you outsource you will only pay the contractor for the work they produce. Most contractors will also be specialists in their field, which can lead to faster and higher quality results.

2014 112

update: a client sent me a thank-you check as a way to avoid paying my boss

Ask A Manager

However, after normal work hours, I would be allowed to visit the houses and do any normal maintenance tasks (light bulbs, touching up paint, AC filters etc), and anything that required bringing in a sub-contractor (broken AC, plumbing issues, roofing, etc.) I am now on Gilbert’s payroll as well, with a property manager title (which is HUGE in my area and even bigger since I work for Gilbert, as he is very well known here).

2018 72

what are the bare minimum benefits an employer needs to provide?

Ask A Manager

I understand my clients’ perspectives to a point — most are in the medical field, and associated at practices prior to opening their own where they were classified as contractors and didn’t receive benefits. I get it, I really do, but I’m of the mind that there should be a basic benefits package factored into total compensation … not just an hourly rate and payroll taxes. A reader writes: I have a question regarding employee benefits.

2018 72

99 Problems: E-Verify Ain't One.

HR Capitalist

30 seconds later I read this in the same article: "Opponents worry that more full-timers will be registered as contract workers by companies seeking to avoid E-Verify, cutting payroll tax revenues. The more E-Verify laws we have in this country, the more payroll taxes we’re going to lose.”

2011 82

when I asked for a raise, my boss said I was ungrateful and threw a tantrum

Ask A Manager

A reader writes: I am technically an independent contractor who gets paid an hourly rate, but I work exclusively at one company on full-time hours. By the way, you are almost definitely not an independent contractor , legally speaking. I am one of the most prominent staff members, and am the only person that works this many hours here. I recently had a contract signing meeting with my boss, which each employee has at the end of our year.

2018 53

my coworker closed her trunk on my arm and didn’t apologize, hiring family, and more

Ask A Manager

What should I know about being hired as a contractor? Because this is not yet a 501c3 nonprofit (maybe in the next few years), they would hire me as an independent contractor. What do I need to know about the pros and cons of being a contractor? Beyond that, though, there can be significant downsides to being paid as a contractor. It’s five answers to five questions. Here we go…. My coworker closed her trunk on my arm and didn’t apologize.

2018 54

Hiring for Diversity, Pt4: “Overqualified People” | Hiring.

Hiring Technical People

My experience as a manager, team member, individual contributor, and contractor includes these challenges, either for people on my teams or for me personally: * Company will not allow an employee to have a reduced job-level or rank.

should I tell my boss I’m leaving because of his remarks about race, wearing shorts to work after breaking a foot, and more

Ask A Manager

Company is offering us the chance to become contractors. My company is offering the “opportunity” to many of its employees (all of whom are at-will, long-term, salaried employees) to transition into becoming independent contractors. The way the company presents it, the upside to becoming an independent contractor is that you will have “more freedom” to come and go as you please, live out of state, etc. It’s five answers to five questions. Here we go….

2015 66

Leave Policy Missing In Action

Evil HR Lady

For example: Can this individual remain on the payroll collecting sick leave until the leave runs out? Under what circumstances can an employee with sick leave available but no intention of returning to work remain on the payroll? How all this fits with your disability (short and long term) policies Under what conditions a manager is allowed to hire a temp or contractor to fill the duties See, that's not so hard, right?

2008 100

Leave Policy Missing In Action

Evil HR Lady

For example: Can this individual remain on the payroll collecting sick leave until the leave runs out? Under what circumstances can an employee with sick leave available but no intention of returning to work remain on the payroll? How all this fits with your disability (short and long term) policies Under what conditions a manager is allowed to hire a temp or contractor to fill the duties See, that's not so hard, right?

2008 100

Tired Of The Same Old Same Old? Try A Franchise!

Career Realism

ended abruptly after his division’s largest customer, a military contractor, pulled its business once the federal government imposed massive across-the board cuts as part of “deficit reduction sequestration” in early 2013.

2015 92

update: my husband can’t work because of his boss’s chemo

Ask A Manager

No severance pay and no chance to collect unemployment either because she was paying Mr. Smith like an independent contractor. I am not sure this qualifies as a happy ending just yet, and I can certainly update you in a month or two when Mr. Smith is making Marmaduke potloads of money and the original company folds as a result of poor direction or, more likely, the IRS pays them a visit and examines their payroll records.

2017 54

asking my boss to move his vacation days, I’m being laid off and don’t want a goodbye lunch, and more

Ask A Manager

I was not considered a regular employee, but an independent contractor. Payroll consistently lost or failed to process my timesheets, and my pay was consistently late, sometimes by months. years of struggling to get paid, and a paycheck not showing up for Christmas, that I told her that as an independent contractor, I would need some sort of deposit for teaching future classes, with final payment after the grades were turned in. It’s five answers to five questions.

2014 57

is it normal to complain about coworkers behind their backs, I opened a love letter to a volunteer, and more

Ask A Manager

I’m an independent contractor being treated like an employee. I was first hired as an independent contractor and didn’t work in the office, only did off-site projects. There was one other employee with the same job description and independent contractor status. However, when I run out of my set office work to do, instead of leaving, they want me to train with one of their full-time employees, who is not an independent contractor.

2016 43

ask the readers: company that treated me poorly now wants my help

Ask A Manager

Do you want to do that through payroll or pay me as a contractor for that time?” It’s time for another ask-the-readers question (although I can’t help weighing in on this one too). A reader writes: Three months ago, I left a job I’d had for nearly six years in a ridiculously dysfunctional dental office. I would have left years ago if the money hadn’t been so good.

is it okay to leave my parents’ dysfunctional business and never look back?

Ask A Manager

In return for all this, I received zero benefits, zero overtime pay, and a salary that is less than half the average for my field My mother set me up as a contractor instead of an employee so I’d have to pay all my own business expenses and payroll taxes. A reader writes: Is it okay to run away from my mother’s web design business and never look back? It’s a cesspool of debt, mismanagement, and abuse.

2013 63

Occupy Wall Street Protestors: Top 10 Reasons You Can’t Find a Job

Guerrilla Job Hunting

  The hires count does not include transfers or promotions within the reporting site, employees returning from strike, employees of temporary help agencies or employee leasing companies, outside contractors, or consultants. #10 - You’re G ullible. Well actually… you’ve been lied to. 

2011 59

I’m trying to resign but it’s not working, client is deducting fees for quick payment, and more

Ask A Manager

Part of your answer to this question (“can we delay payroll if someone isn’t turning in their hours on time?”) Earlier this year, a company I freelance for moved their payroll department to India. The relevant laws on wages are the ones for the state in which you’re working, so it doesn’t matter that this company’s payroll is being handled in India. Since you’re a contractor, it’s a whole different set-up for you.

2015 62