In any game-changing endeavor, the trailblazers have both the most to gain and the most at stake. Since its start in 2009, Uber, a spearhead in the gig economy, has earned a $62.5 billion valuation and forked out millions in legal settlements due to worker classification missteps. The gig economy and technological advances are redefining business as we know it.
Here are our answers to a few of the questions you need to start asking yourself about setting up independent contractors, hiring employees, and what it all means for the future of your business.
Am I setting up independent contractors or hiring employees?
Nothing worth doing should be too easy—and that certainly applies to setting up independent contractors. Mistakes can be costly and generate bad press.
The rule of thumb is that independent contractors have a great deal of say in how, when, and how often they work; but are not entitled to their clients’ company benefits. Generally, employees have less freedoms but are entitled to company benefits.
Worker classification is never simple, but we’ve done a whole series on the subject to make it easier for you to be prepared. If you’re still unsure about whether you’re setting up independent contractors or employees, our worker classification quiz can help.
Are there other worker classification twists that I should know about?
For those who don’t fit neatly into one of the two descriptions above, some economists advocate for a “…third category of worker for the gig economy: the ‘independent worker.’ These hands would have the right to organise and would have social-security contributions made on their behalf. But they would not receive the minimum wage or unemployment insurance.”
The game is changing and it pays to stay abreast of of the laws surrounding worker classification, setting up independent contractors, and hiring employees. Don’t have the knowledge or the time to immerse yourself? You know who to call. (Hint: it isn’t The Ghostbusters.)
Producing multimedia content and executing live events is chaotic. At PayReel, we make sure our clients are able to hire who they want, when they want and that everyone is paid properly. Leave the details up to the PayReel team so you can focus on pulling off a flawless production. Contact us anytime at 303-526-4900 or by emailing us here.
Relax. We got it.