Should You Hire a Web Designer as an Employee or Independent Contractor?

When hiring someone for their services, it’s essential to know if the worker is an employee or an independent contractor. Whether or not you pay or withhold income taxes, Social Security, and Medicare taxes depends on the kind of worker you’ve hired. However, the legal definitions of what makes a worker an employee or an independent contractor are oftentimes difficult to discern. Choosing a Web Host Whether you end up hiring an in-house employee or going independent, you will likely need to purchase the domain name and web hosting yourself. For most businesses, you don’t need anything beyond a basic web hosting plan. If you’re just getting set up now this is a great time to get a deal. There are plenty of coupon codes out there (check out godaddy.com promotional codes for some really good offers) for both new hosting plans and for people looking to upgrade or renew their hosting, but if you are setting up a new account that is typically when you can get the most savings as most web hosts offer really attractive prices for new contracts to attract customers. Employee or Contractor? If you’ve incorrectly labeled an employee as an independent contractor, you may be faced with reimbursing the worker for overtime and minimum wages under the Fair Labor Standards Act, paying income taxes, Social Security, and Medicare, and providing health insurance and retirement benefits. However, if the worker is an independent contractor, you do not have to withhold or pay any taxes. Payers must instead fill out Form 1099, supplying a copy to the contractor as well, to report payments over $600 a year. Generally, you can determine whether a worker is an employee or an independent contractor by the control and method of their service. Employees The work of an employee is overseen by another person, and their actions may be controlled by a company. Financial aspects such as payment methods, expenses, and supply costs are…

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