Why “Hire” Is A Four-Letter Word

hire independent contractorWhen you search for individual freelancers to do work for your business, wash out your mouth with soap every time you say the dirty word “hire.” Because you should never hire an independent contractor.

What’s the problem?

The term means “employment.” When you “hire” an individual, you’re getting an employee, not an independent contractor.

Why is that important?

  • Are you registered to do business in the state where the freelancer lives?
  • Are you paying into the government worker’s and unemployment compensation funds?
  • Are you doing payroll tax withholdings? And making employer FICA contributions for Social Security and Medicare?
  • Does the freelancer live overseas? If so, are you setting yourself up to pay an extra month of salary each year. Because many countries require 13-month pay.

Avoid using “hire,” “employ,” or other dirty words unless you want an employee.

Instead, use “contract with,” “select,” “retain the services of,” etc. to procure the services of an individual freelancer.

Experienced business lawyers prepare independent contractor agreements to prevent employment. Yet business owners should stop referring to those workers using employment terms like “hire.”

Author Mike Young, Esq.

Mike Young has been practicing business and technology law since 1994. He's been an entrepreneur since 1988. To get legal help from Attorney Young, click here now or call 214-546-4247 to schedule a phone consultation.

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