Reduce Your Payroll Costs With Contractors
Last months unemployment rate of 6.5% shows the huge challenges businesses are facing in continuing to profitably manage their operations.While most business owners feel just as strongly about their employees as they do about their bottom lines, lay-offs continue to happen when entrepreneurs run out of other costs to cut.While laying-off employees is something that most businesses use as a last resort, the real challenges these businesses face only just begin. One of the largest of these obstacles is continuing to provide customers the same high levels of products and services with fewer workers. Typically businesses prioritize and shift tasks to other employees or simply let processes drop through the cracks. Another option that many business owners overlook is contract workers. Contract workers or independent contractors are a great way to fill holes in your production or service team when needed. These wo dietrine rkers can be used for specific tasks or jobs or used during seasonal events. The up shot is that when these tasks are completed or the season ends, these workers no longer remain on the payroll. Further, businesses can then avoid additional employee costs including Social Security, Medicare and unemployment taxes as well as other expenses related to vacation, sick time, and retirement benefits. All combined, these additional expenses can related to more than 30% above and beyond the wage or salary your employee may receive.The downside is that these workers can, at times, cost more when compared directly to wages paid for employees. But, since these contractors can be matched with specific jobs or tasks, their expense can be offset with the additional revenue they bring into the company. Additionally, when the task or job is over, the business is not straddle with finding ways to make the workers productive.