If you’re like the majority of businesses, you engage at least one independent contractor every year. Increasingly, companies and small businesses are relying more on independent contractors to provide outsourced resources like marketing, sales, technology, accounting, and a host of other work functions. It’s a great way to reduce your overhead, select the best talent for discrete projects, and remain focused on your core business proposition.
As more businesses turn to independent contractors to supplement their workforce, competition for top talent is increasing. Obviously, competitive compensation and flexibility are ways to set your business apart. But here are a few additional ways you can set your business apart and attract top freelancing talent:
- Support your contractors with business incorporation. Independent contractors are self-employed workers. At the very least, they need an EIN, but they will reap significant tax, marketing, and legal benefits by operating under a limited liability company structure. Incorporation and annual reporting averages around $200 per year. While this upfront payment can be steep for the average independent worker, you can offer to advance the cost or roll the payment into their commissions/project payment.
- Make tax payments easier for your contractors. Since your business isn’t making deductions from your contractors’ pay, contractors have to pay self-employment taxes. This can be confusing, time-consuming, and costly, often leading to unexpected unpaid tax liability at the end of the year. Help your freelance workforce by offering a tool, like the SoleVenture mobile app, to track and make their quarterly tax payments.
- Help contractors access affordable benefits. You can’t pay for a contractor’s health insurance or benefits directly. Nevertheless, you are impacted if your best contractor delays a deadline because of an illness or needs to take on more work to cover a medical bill. As a business owner, you should be invested in helping your business partners, including your contractor’s businesses, succeed. You can help make benefits enrollment easier by referring them to platforms that specialize in insurance and resources for self-employed workers.
SoleVenture can help you grow your business and keep you working with talented freelancers. Contact us today.