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Episode 939

Employees vs Subcontractors: Which is best?: Episode 939


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Episode 939 – Employees vs Subcontractors: Which is best?

In this episode, Mike talks about the issues of hiring full-time employees versus subcontractors, renting an office space for training and supply pickup, and the importance of worker’s compensation insurance. Mike advises that the decision of hiring full-time employees versus subcontractors should take into account the legal guidelines that differ from state to state or province. He also explains that if one hires a human being, provides training, and controls their time and work supplies, then they are more likely to be classified as employees. However, if they hire a corporation, that is an indicator they’re a subcontractor.

Regarding the office space, Mike advises that before renting an office, one should consider the cost, benefits, and drawbacks. He suggests that one should start by working from home or a shared workspace until the business grows large enough to justify renting an office space.

Lastly, Mike emphasizes the importance of worker’s compensation insurance, which is the responsibility of the subcontractor to obtain. He warns that accidents can happen to anyone and suggests that it’s best to have a lawyer or a trusted firm that could stand by the business in case of an audit. Mike suggests that it’s moral to pay for worker’s compensation insurance, even if the subcontractor is responsible for it, as it protects them and the business.

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