You may be working on your own when you first start your business, but at some point you may need to bring in someone to help you as your business grows. For example, you may hire an assistant, or someone who specializes in marketing to help promote your company.
Whenever you hire someone, you will sign them on as employees or as contractors. So what’s the difference?
As a wedding planner, if you hire people to provide services such as music or photography, they will likely be self-employed contractors (who you will find though word of mouth or even the Yellow Pages). However, the other people who work for your company may be either employees or contractors, and there are different tax requirements for both.
When you employ people you also need to be aware of health and safety issues, workers compensation, minimum wage and unemployment insurance – particularly regarding your particular State.
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