BizSugar.com › Management › Could Your Independent Contractors Get You in Trouble?

Since the recession began, small business owners have been turning more and more to independent contractors. There are many reasons why this is a good move: It saves money (you’re not paying a salary and benefits, but can pay per-project instead). It enables you to expand your workforce when you’re busy, without keeping people on the payroll during lean times. It eliminates the hassle of withholding income taxes, withholding Social Security and Medicare taxes, and paying unemployment tax on their salaries as you would with an employee. And it allows you to take advantage of the specialized skills of workers you might not be able to afford to hire full-time.