1.Managing Your Team: The Differences Between Employees and Contractors Deanna Wharwood

2. At Deanna Wharwood and Associates, we have two tracks for our clients: Team Phoenix is our Transition Assistance that prepares Senior Military Leadership and their spouses for the job market. Team Scorpion is for active duty, veterans and military spouses who choose to start their own businesses and want seasoned, proven and reliable coaches, consultants, trainers and mentors at their side for best success. We work with business owners from start-up to their first 6-figures. 3. Managing Your Team: The Differences Between Employees and Contractors/ Its a dilemma, isnt it? You need help in your veteran owned small business after all, you cant possibly do everything yourself but the added expense and headache of hiring someone just doesnt seem worth it. And then there is the question of hiring an actual employee, or simply working with a self-employed contractor. Which you choose will depend largely on your business model, but there are some major differences you need to be aware of. 4. The Tax Burden Shifts Probably the most important difference between an employee and a contractor lies in who has the responsibility for paying taxes. Contractors, on the other hand, are responsible for their own tax bill. - That means that when you pay them, you dont withhold any money to send to the government on their behalf. 5. The Pay is Different Maybe Contractors depending on where they live and work typically make more per hour than an employee does. At first glance, it can seem like it would be smarter (or at least less expensive) to hire an employee than a contractor, but if you look carefully, you might be surprised. First, while you might pay a US- based virtual assistant $35 or more per hour, you have to keep in mind what you are NOT paying for. 6. You dont have to foot the bill for: Office space and furniture your VA works from his or her home. Computer equipment your VA buys her own. Software again, your VA supplies her own tools, with very few exceptions. Vacation and sick days contractors are only paid for the hours they actually work. Lunch breaks (and all that other unauthorized downtime) most contractors work with a timer system so you pay only for the hours actually worked. The employer portion of Social Security tax as a self- employed individual, contractors are responsible for the entire amount. 7. So while it might seem like hiring $10 per hour employee is the better deal, by the time youre done paying for all those extras, you can bet youre paying close to what youd pay a contractor. You Are Not Their Only Employer When you hire an employee, you can expect that he or she will show up at the designated time and focus only on you and your business for the time he or she is working. Not so with a contractor. Her time will likely be divided between many clients, so organizing your tasks is critical if you hope to get the most out of the relationship. 8. Whether you choose to go with employees or contractors, make sure you you keep in mind the differences. 9. Resources for Contractors Online: http://odesk.com http://freelancer.com (Adam Byrnes made a great offer to active duty and veterans) http://fiverr.com (for small jobs) 10. Deanna Wharwood leads this team of consultants, also known as Team Scorpion. Her strengths are business strategies, sales and business systems. She specializes in done-for-you business plans, capitalization plans and marketing plans; troubleshooting and streamlining operations and selling without selling your products and services. 11. Connect with me: Facebook: https://www.facebook.com/DeannaWharwoodBusinessCoach LinkedIn http://www.linkedin.com/in/deannawharwood Twitter http://www.twitter.com/deannawharwood YouTube http://www.youtube.com/deannwharwood