Sometimes, there is too much work for you to do alone in your business. You will have to choose between hiring employees to work for you or to find freelancers to do the work. Sometimes, you will need to have some of both. When it comes time to decide, consider the ways a freelancer can save you money and cut your business costs.
One of the first things you will not have to worry about when you hire a freelancer is payroll taxes. You will not have to match the Social Security and Medicaid, your unemployment tax rate won’t go up and you will not have to list them for unemployment tax purposes.
You have to have disability on your business insurance if you have employees. If you only have freelancers, you do not have to pay for this coverage. If you have both, you do not have to claim the freelancer and have a higher premium.
No Vacation Pay, No Paid Time Off
When you work with freelancers, you only pay for what work is done. You set up a contract between the two of you detailing what is to be done and by when. If the freelancer chooses to wait until the last possible minute and only works for two hours, as long as the work is done there is payment. If, next week, there is no work done because of a vacation or medical issue, you do not pay anything.
Building Space and Supplies
You do not have to worry about providing a freelancer with a place to work or any supplies. If your business is run from your home, you can keep it that way and do not need an office for your help. You do not need to give the freelancer any equipment or supplies to get the job done. Think of the money you will save when you do not have to have an office and all the utilities that go with it because you have a freelancer doing the work.
No Need to Keep Someone On Payroll when Business is Slow
Often, in a normal business with employees, you would need to keep at least a few of them on and working even when it is the slow time of the year to avoid losing them to a different job when you most need them. When you have freelancers working for you, they only work when you have work for them. If things are slow, you do not have to give them work so you do not have to pay them anything.
While it is always a good idea to pay and treat anyone who freelances for you well. It is strictly a business thing. The freelancer is in business too and understands things can be slow. If you like the work and want to be sure to have them available when you are in need, at least keep in contact so everyone knows what is going on and can make plans for the future.