Beauty Barrage - May 21, 2019
Freelancers can be a fantastic way to work with talented people you might not be able to hire full-time. But before you staff your company with outside help, there are a few things to consider before you start.

Do you know the difference between a freelancer and (also known in many cases as an independent contractor) and an employee? The Internal Revenue Service helps explain this by highlighting the difference between how an independent contractor is utilized as opposed to an employee.
For example, do you (or will you) have a say in how the individual is paid? Will you hold power over the individual to assign how and when a task will be completed? Are there benefits provided to the individual, such as sick or vacation pay or even health insurance? CNN Business breaks it down further with what is described as the "ABC test." To prove that their workers are independent contractors there are three requirements an employer must meet :
• that the contractor provides the service free from the company's control
• the service provided is outside the company's core business, such as a janitor at a law firm
• the contractor is an independent professional engaged in providing their service to companies other than the one in question.

One critical point to make – hiring individuals as independent contractors but working with them as employees could land you in some seriously hot water, so it’s best to do things the right way to save you (and your business) a major headache.

Should I Hire a Freelancer?
As appealing as it might be to hire someone without paying the additional payroll taxes and benefits, there are plenty of reasons why going this route might not be everything it’s chalked up to be. A few downsides exist, including:
• Freelancers are independent workers – so that usually means there is no consistent supervision. Hiring someone to do a task means you need to put a lot of faith into whether or not they’re going to do it right – and on time. Want someone to have loyalty to your brand or have a stake in the process? Hire an employee so that they (and you) feel more stability in the process.
• There is a high turnover. Unless, you happen to find a freelancer that you regularly book and can count on (in which case, why not hire them and provide benefits) – then you could face a series of exits and new on-boarding every time a freelancer moves on to something else. Training and re-training freelancers as they come and go can take a lot of effort, not to mention resources – do you have extra time for that?
• Payment is a sticky topic. What type of arrangement are you considering with a freelancer if you go that route? How much will you pay them – do they have a set number of projects or hours to complete for an invoice? Can you confirm they worked the hours they are billing you for? Trying to manage multiple freelancing contracts can make things even more complicated.
• Potential legal issues. In April 2016, Uber decided to settle a class action lawsuit brought against it by drivers in California and Massachusetts for $100 million. While recent court decisions have sided with Uber on the independent contractor classification, it still faces numerous individual lawsuits , costing them untold millions in ongoing litigation.

Do It Right
If you’ve suddenly noticed your pulse rising and your shoulders tight at the thought of all these complications and hassles – there is some good news - you don’t have to figure it out on your own!
Working with a company, like Beauty Barrage, that employees talent and manages them on your behalf can help to reduce the burden, and tax implications. At Beauty Barrage our field team is comprised of employees. We hire, train, and manage them for you. This means that they all receive W2 forms from Beauty Barrage, so you don’t need to worry about adding them to your payroll process. We comply with federal, state, and local tax rules to further protect our employees (and clients)..
Making sure your brand has adequate resources for in-store support is difficult. Partnering with a team that handles management, training & education, payroll, and sales reporting allows you to focus on the big picture strategy for success. Stressing over tax liability implications for independent contractors or changes to state employment laws isn't going to move the needle on your business so why waste time on it?

Ready to talk more about working with Beauty Barrage and how to use our services to enhance your brand and increase sales in-store? Let’s chat!

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