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As a business owner, the legal responsibilities you have vary considerably between employees and independent contractors.

Both types of workers can generally perform the same job, ranging from digital marketing to commercial plumbing maintenance. One route offers greater flexibility, and the other offers more control.

What Are The Benefits Of Contractors?

Working with an independent contractor can provide several benefits, such as the ability to retain services for a short time and terminate the relationship smoothly. You do not have to worry about handling unemployment claims or providing office space.

Contractors may charge more per hour, but you may still save money because there is no need to pay benefits. Your primary concern is the finished result, as you have less say over how and when a contractor carries out the work.

What Are The Advantages Of Employees?

With an employee, you have more control over not just what the job entails but also how and when the worker performs it. This can improve the quality of finished products. By investing in and training employees, you may be able to lower your costs, improve efficiency, boost work output and increase profitability.

How Do Your Responsibilities Differ For Employees Versus Independent Contractors?

As mentioned by the U.S. Department of Health & Human Services, when you hire employees, your business must withhold Social Security, Medicare, state taxes and federal income taxes. These conditions do not apply to independent contractors, who must take care of taxes, liability insurance and similar expenses on their own.

Whatever you choose, ensure your operations comply with Connecticut labor laws, in the case of employees, or the legal details of your work contract with third-party businesses.