A 1099 employees can make a huge impact on your business, here’s how! As a manager, you might cringe at the thought of using freelancers to take care of your business. Truth is, it’s the way the working world is transitioning.
When exploring your options, you might start to wonder what the difference is between 1099 and W2. Knowing the differences and benefits of each is important for business owners looking to effectively utilize more staff.
Read on to see whether you should hire 1099 or W2 employees!
What Is a 1099 Employee?
A 1099 employee acts as their own boss. In short, they’re running their own business. When you work with a 1099 employee, you’re partnering with them to complete a service.
Bringing on as 1099 employee makes you their client. You’re paying them for their skill. This could be anything from:
- Customer support
- Data entry
- Web Development
- Graphic Design
These are only a few of the options you have to choose from. There is an endless array of skilled, paraprofessional and executive employees that offer their services as a 1099 employee.
Tracking and Management
Let’s take a peek at managing independent contractors. It’s important to realize that while 1099 employees are their own boss, you’re in charge. Most 1099 employees will be reliable because they’re trying to survive by their own merit.
Yet it’s still valid to track and manage 1099 staff productivity like other staff. Let’s take a closer look at example jobs a 1099 employee could do. A popular position title is bookkeeping for independent contractors.
This position is easy but includes busy work that can detract from revenue-generating tasks. That’s where 1099 employees come in handy. They work to minimize or eliminate busy work.
Also, note that 1099 employees can hire their own staff to help them complete work for your company. That means that if you give them a project, they can have their employees do it for them, often more quickly than if you trained and provided benefits for an inhouse full-time employee.
What Is a W2 Employee?
A W2 is different in that they work on an hourly or salary basis. This would be a staff member that gets hired by your company and you are their employer. That means they’re also your responsibility.
They typically will be covered by your policy for healthcare, benefits, and employee functions. The best way to think about the difference between a W2 employee and 1099 is to think of W2 as being remote.
They’re like any other in-house employee but work remotely.
Managing and Tracking Remote Workers
Having remote employees can be overwhelming or daunting for some managers. The good news is that it’s easy to manage and track remote employees. Your remote employees can track and input hours worked, and you’re able to see their progress.
The the lack of in-person oversight is worth it because it cuts down on time, allowing more in-house productivity and earns the business higher revenues!
Taking the Plunge
A 1099 employee can help transform your business into what you’ve dreamed it could be. Many independent contractors are business owners themselves. They don’t want their business to be successful, so they’ll likely give you their best quality services.
There are also many additional benefits to allowing employees to become remote workers. 1099 employees have the benefit of traveling or working from home. This eases stress and increases their motivation.
These benefits are why 1099 and W2 employees are becoming more popular among businesses. Is your company in need of services like bookkeeping or payroll? Reach out to us and we’ll answer any of your questions about the right employee for you!