Independent contracting is a type of business in which a government or other client firms come into agreement with normally a small business or individual to perform work that could have been done in-house by its employees. In California, Phillip Romero, PhD, Professor of Finance, University of Oregon, did a study. He found out that independent contractors are important and determining factor of economic strength and growth.
There are many rules set that need to be followed for independent contractors. This is so to remain on a high level and not be referred to as employees. They should be able to stay in control when performing the duties to render the service.
This can be a success if the individual contractor is able to create a working time table. This so as every task is completed in time, overseeing payments and tasks of workers, renting working space. If this is agreed upon before the work can be done from the premises of the hiring company. If one has all the instructions and guidelines necessary to get the work done, not asking from the hiring company.
This guideline is important because it clearly shows the difference between independent contractors and employees. The employees are told exactly what to do and how to do it by their employers. This is not the case where independent contractors are concerned.
Profit and loss making is a sign used to show that contractors can operate independently. Small businesses and individuals should be able to show that they incur running costs for the business. This can be proved using receipts showing rent payment, internet service payment, pay slips, and receipts for buying machines and equipment. The contractor is able to know if they are likely to make a profit or loss when preparing the invoice.It's better to have an all-inclusive invoice at the end of the project that has total expenses, than daily billing to the hiring firm to avoid reducing the profit margin due to low charges.
Wider services provision is also vital. The independent contractors should not focus on marketing their services to an individual or one company. Intense marketing should be done by the contractors getting well designed business cards and letter heads, signing up in different professional organizations, getting a website, appearing in telephone and postal directories, attending trade exhibitions, cold calling of prospective clients and print advertising via newspaper, journals or magazines. The more customers independent contractors have the less their status is questioned.
A written agreement is important to show the contract between the hiring firm and the independent contractors. This document should in a clear manner say that the services are being offered to the firm by an independent contractor. It should also state that the major objective is getting the project done within the stipulated period without any interruptions from the hiring company. The contractors should confidently state that they are not employees.
Phillip Romero understands that the set barriers and plans to get rid of individual contractors would have a negative effect on economy of California. The percentage of registration of small and new companies is considered to be one of the highest in California. This is a factor that has increased employment in California.
There are many rules set that need to be followed for independent contractors. This is so to remain on a high level and not be referred to as employees. They should be able to stay in control when performing the duties to render the service.
This can be a success if the individual contractor is able to create a working time table. This so as every task is completed in time, overseeing payments and tasks of workers, renting working space. If this is agreed upon before the work can be done from the premises of the hiring company. If one has all the instructions and guidelines necessary to get the work done, not asking from the hiring company.
This guideline is important because it clearly shows the difference between independent contractors and employees. The employees are told exactly what to do and how to do it by their employers. This is not the case where independent contractors are concerned.
Profit and loss making is a sign used to show that contractors can operate independently. Small businesses and individuals should be able to show that they incur running costs for the business. This can be proved using receipts showing rent payment, internet service payment, pay slips, and receipts for buying machines and equipment. The contractor is able to know if they are likely to make a profit or loss when preparing the invoice.It's better to have an all-inclusive invoice at the end of the project that has total expenses, than daily billing to the hiring firm to avoid reducing the profit margin due to low charges.
Wider services provision is also vital. The independent contractors should not focus on marketing their services to an individual or one company. Intense marketing should be done by the contractors getting well designed business cards and letter heads, signing up in different professional organizations, getting a website, appearing in telephone and postal directories, attending trade exhibitions, cold calling of prospective clients and print advertising via newspaper, journals or magazines. The more customers independent contractors have the less their status is questioned.
A written agreement is important to show the contract between the hiring firm and the independent contractors. This document should in a clear manner say that the services are being offered to the firm by an independent contractor. It should also state that the major objective is getting the project done within the stipulated period without any interruptions from the hiring company. The contractors should confidently state that they are not employees.
Phillip Romero understands that the set barriers and plans to get rid of individual contractors would have a negative effect on economy of California. The percentage of registration of small and new companies is considered to be one of the highest in California. This is a factor that has increased employment in California.
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