Category Archives: W-2 W-4 W-9 Employees

Tips for how to hire W-2 W-4 and W-9 employees for your small business.

W-2 W-4 W-9 Employees

Stay updated on the topic of hiring an W-2 W-4 W-9 employees in this section of StartUpaSmallBiz.com .



Starting up a small business, even if it's just on the side, is no longer an option -- it's a necessity. Why? Because everyone needs an additional source of income in our new economy. Click here to sign up for educational and motivational posts to keep you on track.

Tips for Working as an Independent Contractor

An independent contractor is a professional who often acts in the capacity of an employee to a business, but without the strings attached. As a contractor you may work with multiple clients on very different assignments. The way you market your services, manage your time and choose your clients are all key to success in this type of job.

Market Your Services

Consistently finding clients who need your services is one of the most difficult challenges of working as an independent contractor. The ideal scenario is to have multiple projects going at any given time to ensure a consistent income. Put your virtual business card down in as many different reputable places as possible. Set up a profile on the major reputable freelance sites. Send bids to businesses who request contractors online. Create an SEO-optimized website to draw traffic for keywords that specifically describe your service. Consider hiring an online advertising expert to help you use Google AdWords and other advertising vehicles to bring in serious potential clients.

Set a Reasonable Schedule

It is very easy to find yourself working well into the night as an independent contractor. After you spend a long night burning the midnight oil, you finally go to sleep at 4:00 a.m., then your client on the other side of the country calls at 7:00 a.m. To avoid this scenario, you must set firm business hours that clearly indicate time zones and make sure that all of your clients know them. Request that clients email you in advance to set an appointment for a phone call or instant messaging session so that you aren’t thrown off of your schedule with other clients.

Be Choosy

As excited as you may be to have a potential new client, sometimes it is best to pass on certain projects. Evaluate the client the same way he is evaluating you. Are his demands reasonable? Does he communicate with you in a productive and respectful manner? Does he complain about past contractors? If you ignore warning signs you might be setting yourself up for issues down the line. Work for people who have plenty of experience working successfully with independent contractors, and who communicate their needs clearly.

It takes time to get the hang of working as an independent contractor. Ideally, over time you will learn how to successfully navigate different personalities and situations. If you need help, talk to more experienced contractors and read their blogs to learn how they manage client relationships.

 



Starting up a small business, even if it's just on the side, is no longer an option -- it's a necessity. Why? Because everyone needs an additional source of income in our new economy. Click here to sign up for educational and motivational posts to keep you on track.

The Rewards and Challenges of Hiring People

When you first start your small business you might not have the funds available to hire people. But as time goes on and you start to turn a profit or you get financial assistance and things start to get a little busy, you might want to consider hiring some help. Let me help you explore some of the rewards and challenges of hiring people to your new small business so that you can reason your way through this important decision.

Rewards

There are a number of rewards to hiring people to consider:

  1. Help! The most obvious reward of hiring someone is that you get the help you have probably are desperately in need of to really launch your small business. You can assign someone to the dull details of running the company while you work on your vision for growth and new products or services. Oh, and you actually get to take an actual lunch once in a while.
  2. It’s a tax deductible business expense. Employee wages are tax deductible. You might also be able to deduct reimbursed employee expenses that you’ve paid out of pocket, like uniforms, tools and training.
  3. More brain power. Two heads are better than one. You may find that hiring someone else to help you will add value to your business in ways you never imagined. Hiring the right person can add a new level of insight and innovation to your business.

Challenges

  1. Recruiting can be costly and takes time. It may seem like this is the easiest part of hiring someone, but the recruitment process can be time consuming and expensive. When you hire someone you want to make sure that you find someone who’s really qualified, so you’ll want to post ads on hiring websites, take your time sorting through applications and of course interview people.
  2. When it doesn’t work out. Another challenge that you may face when hiring someone is coming to a point where you realize that the new hire isn’t working out for your business needs. It can be difficult to let someone go and they might qualify for unemployment benefits, which could cause your state employment tax rates to increase.
  3. There’s a lot you need to learn and know. Your state likely has an entire handbook of information related to employment laws. You are required to follow them to the letter to avoid problems. For instance, there are rules about break times, full-time versus part-time hours and overtime pay that you must follow. And of course you’ll need to hire a payroll processing company to figure out the proper employee withholdings and issue checks.

So Is It Time to Hire Someone?

Take all these considerations into account when deciding if it’s the right time to start hiring people. If you’re still unsure, try hiring a qualified W-9 worker (independent contractor) to see how things work out, then make the step of getting a full-time or part-time W-4 employee.



Starting up a small business, even if it's just on the side, is no longer an option -- it's a necessity. Why? Because everyone needs an additional source of income in our new economy. Click here to sign up for educational and motivational posts to keep you on track.