How to talk to a company as a prospective contractor vs. employee?

Hiring a worker - contractor or employee?

  • This will be an online retail company. I want to hire someone to take care of order fulfillment/shipping. When an order comes in, he will be notified by email (or he can also login to a website to check the orders). What can I do to make sure he will be classified as a contractor? I can provide him with the shipping materials or can buy it himself and charge me for it. He can ship out the item any time of the day, but with in 2 business days of receiving an order. I can pay him by the hour or by number of orders fulfilled. I really want this worker to be a contractor, as this will be a really small business. I will be surprised if more than 10 orders come in per day. Which shouldn't take more than 10-15mins (put the item in a package, tape it and stamp it). So I don't want to go through the hassle of hiring this worker as an employee. And if I want to talk to a professional, who would I contact - Small Business Attorney or a CPA? Category Business & Finance > Small Business

  • Answer:

    Confirm my advice with a CPA. If good, then proceed as follows: 1. Draft an agreement that specifies person is an independent contractor. The agreement states the scope of work is to: - Ship out items within 2 days of receiving order. - Person can use any reputable shipping company or must use the shipping company specified by the purchaser of the product. - Person will provide his own place of work - Person may subcontract work out to others provided that the subcontractor meets exceptable standards (i.e., has insurance, has adequate facilities, etc.) - Person will be compensated at the rate of $X per shipment plus shipping fees and cost of shipping materials

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Confirm my advice with a CPA. If good, then proceed as follows: 1. Draft an agreement that specifies person is an independent contractor. The agreement states the scope of work is to: - Ship out items within 2 days of receiving order. - Person can use any reputable shipping company or must use the shipping company specified by the purchaser of the product. - Person will provide his own place of work - Person may subcontract work out to others provided that the subcontractor meets exceptable standards (i.e., has insurance, has adequate facilities, etc.) - Person will be compensated at the rate of $X per shipment plus shipping fees and cost of shipping materials

zeuz

Talk to your CPA. Contractor should fit here just fine. --- Larry http://georgiaitsolutions.blogspot.com/

Larry Pepchuk

I would classify her as an independent contractor. As long as you don't dictate to her what hours she has to work. It's completely ok, that you agree together what hours she works. Also, she doesn't HAVE to use your computer & telephone. She does this so she is not responsible for controlling the files out of the office.

elaine

Talk to your CPA. Contractor should fit here just fine. --- Larry http://georgiaitsolutions.blogspot.com/

Larry Pepchuk

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