Don’t Put that Help Wanted Sign Up until You Read this Article

//Don’t Put that Help Wanted Sign Up until You Read this Article

Don’t Put that Help Wanted Sign Up until You Read this Article

Don’t Put that Help Wanted Sign Up until You Read this Article by Deborah E. KaminetzkyYou’ve been working on your business hard and with great success. So hard in fact that you end up working most nights. Your spouse and kids tell you that they miss you and would like to spend more time with you. The next natural step would be to get some help, right? Before you hang up that “help wanted” sign or put an ad on Craigslist, here is something to think about:

What kind of help are you looking foran employee or an independent contractor?

Independent contractors tend to have their own business and advertise their services. They usually have their own business cards and insurance. They assume the risk for making a profit on a project. They set their own schedule and can demand or negotiate a price for the project. They can offer their services to others and are free to refuse a particular job. In addition, they can decide to hire help with a project. An independent contractor can decide when, where and how to complete a project so long as the end result complies with any requirements set by the person who hires them.

Employees on the other hand usually have their hours and dates of work assigned by their employer. They have to ask for a day off or vacation time. They usually work exclusively for one employer although they can work for more than one, just not on the same days and times. Their rate of pay is set by the employer who may also give them certain benefits. They may be required to attend certain meetings or trainings set by the employer. The employee usually works in a facility owned by the employer and uses tools and supplies provided by the employer plus the employer directly supervises an employee.

Misclassification can cost you.

Sometimes employers misclassify employees as independent contractors to get out of paying unemployment insurance, workers comp, Social Security, tax withholding and temporary disabilityall costs of having an employee. This can be problematic as they are still liable for these things if it is discovered. Another reason an employer might misclassify an employee as an independent contractor is that if they earn less than $600, no 1099 needs to be issued. This can be tempting for a temporary employee.

Good advice can keep you on the path to success.

Think about the type of work you want to delegate. Would you need the person to work with you in your location, like in a bakery as a cashier, or would they be free to get the work done elsewhere? Are you looking for someone to do part-time administrative work or a potential partner who takes an interest in the growth of the business? How to classify an employee can sometimes get even trickier nowadays with so many people freelancing or working remotely.  

Prior to hiring, talk to your accountant about the true expense of hiring someone (hint – it’s not just the hourly rate) and what would work best for you in your situation. Every business should have an accountant not just at tax time but for very important decisions like your first hire. Contrary to popular belief, attorneys don’t just want you to get yourself in trouble so that we can help you out for a fee; we want you to ask us questions about how to do it right the first time!

Deborah E. Kaminetzky, P.C.Deborah E. Kaminetzky, Esq.
Kaminetzky Law & Mediation, P.C.
132 Spruce Street
Cedarhurst, New York 11516
Phone: 516.374.0074

By | 2018-10-15T15:58:19+00:00 April 6th, 2017|Small Business|Comments Off on Don’t Put that Help Wanted Sign Up until You Read this Article

About the Author:

Deborah E. Kaminetzky
Deborah E. Kaminetzky is the founder of Kaminetzky Law & Mediation, P.C. located in Long Beach, New York. Prior to starting the firm Deborah worked at a Long Island firm where she learned the practice of Matrimonial and Family law and Estate Planning. Deborah has also worked at the New York City Department of Consumer Affairs where she was responsible for prosecuting unlicensed home improvement contractors and negotiating settlements for consumers. Prior to practicing law, Ms. Kaminetzky was the president of a commercial property management corporation in the New York Metro area. Ms. Kaminetzky is a member of the National Association of Divorce Professionals, New York State Council on Divorce Mediation, Family and Divorce Mediation Council of Greater New York, New York State Bar Association (Business Law, Estate, Family Law, ADR and General Practice Sections), Nassau County Bar Association (where she serves as Chair of the General, Solo and Practice Management Committee and The Nassau County Women’s Bar Association. Ms. Kaminetzky was appointed to the Committee on Law Practice Management of the New York State Bar Association in 2015 and has been a frequent speaker and author of articles for their journal. Ms. Kaminetzky serves on the Board of Directors of the Yashar Attorney and Judges Chapter of Hadassah as a their Treasurer, and was their Woman of the Year 2012 and Leadership award honoree in 2019. Deborah graduated from New York Law School in 1991 and the University of Michigan, Ann Arbor in 1986. Ms. Kaminetzky was admitted to the First Department in 1991 and the United States Supreme Court Bar in February of 2015. Deborah is on the Matrimonial fee dispute arbitration panel for Nassau County. She expanded her alternative dispute resolution practice by completing a Mediation certificate program in December of 2013, an advanced Mediation certificate program in 2015 and most recently a Divorce Mediation certificate in early 2016 from The New York Peace Institute. Ms. Kaminetzky has spoken to various groups on topics including matrimonial law, technology and social media use, and disaster preparedness for business including cybersecurity.