No matter what industry your business falls under, hiring certified contract workers should be clearly understood. For many business owners, hiring certified contract workers for short and long term projects keeps businesses profitable and fully staffed.
Pros and Cons of Hiring Independent Contractors
The main pros of hiring contract workers is the tax exemption advantages. Certified contract workers are not employees of the business. They are responsible for IRS tax contributions. Business owners who hire contract workers are not responsible for retirement or health benefits. You wouldn’t hire an electrician that was not licensed. You would also not hire one full time in case you need them occasionally throughout the year. Why would other contract work be different? It shouldn’t.
The major disadvantage of hiring contract workers is the terms of the contract itself that doesn’t clearly define qualifications and certifications.
Special Education and Training Required
A contract worker should be fully educated and trained for the project work. In the IT industry, there are specified certifications. This is something that should be weighed in with work experience. Someone may have the experience to prove they can do the job and lack certification, and someone may have certification and no work experience. You should try to find someone with both, but use your discretion as you find the best person for the job.
Oracle Cloud Excellence Implementer
When businesses requires contract workers for IT convergence needs, it is their responsibility to review certifications carefully. Contract workers should be able to support their certifications with past work experience in technology systems and processes as well as operational technology systems. For instance, contract workers hired with Oracle Cloud Excellence Implementer certifications should have a proven track record of experience with Oracle Cloud software technology and implementation processes.
ATA (American Translator Association)
ATA certified contract worker have the qualifications to assess professional level translation skills for source-target language combinations. The Certified Entry Networking Technician certification validates the skills to manage networks. You can have certified translators or interpreters that specialize in skillsets from manufacturing to marketing events. You want to make sure you have someone with the training and vocabulary to make sure your work is protected to investors, workers, and clients across regions.
Understanding the Fair Labor Standards Act
When you understand the Fair Labor Standards Act, this links the certifications you should expect from contract workers to clearly defined regulations on responsibility for documenting contractual agreements on how contract workers you hire are paid and by whom.
Since contract workers are self-employed, they may be paid directly by the hiring employer. For example, if an IT project requires a Certified Technical Trainer contract worker for a short term period of time, the business owner needs to ensure the terms of payment in the contract are clearly understood.
IRS rules and the 20 Factor Test
IRS rules and the 20 Factor Test are important for business owners who hire contract workers with certifications. This is due to the fact that contract workers consider themselves self managed. Depending on the needs of the business owner to control the work performed by certified contract workers, defining IT project management is essential to the completion of a project. If a project manager is required, request a PM certification.
Certification from contract workers is an important factor in assuring IT projects are completed timely, cost-effectively and successfully. Once a project is planned, certifications should be tied to specifications of the work to be performed.
Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.