For hiring managers in the process of evaluating employee options, there is a difference between hiring a freelance employee and a full-time employee. This is largely in part due to the fact that hiring a freelancer is more cost effective than hiring a full-time employee. Despite the fact that freelance employees have a higher hourly rate, employers may anticipate saving 20% to 30% annually with a freelancer. How is this? Despite the salary of these freelancers being equal to that of a full-time employee, companies are not required to provide these employees with health insurance, retirement, or other benefits, making these freelancers a cheaper hiring option. Within that same vein, organizations also pay less tax as a result of Medicare and Social Security not being covered by an employer. There are still tax responsibilities for organizations and the freelancers they consider hiring. Freelancers are required to cover their self-employment tax. Managing these matters must be considered by an organization outsources prior to hiring any freelancer. To learn more about the breakdown between which employee is right for your organization, please see the infographic coupled alongside this post for more information.
Hiring A Freelancer vs. Full-Time Employee this infographic was contributed by Tab Service Company, a provider of a valued 1099 printing service
