3 ms·
It's not that simple. For a company, a contractor is much different than an employee, and it is much more regulated and costly to terminate an employee. For ex
by rsweeney21 7y ago
It's not that simple. For a company, a contractor is much different than an employee, and it is much more regulated and costly to terminate an employee.
For example, if you terminate an employee you have to have proper documentation to justify the termination. Even then, you are still vulnerable to a wrongful termination lawsuit...unless you offer them severance in exchange for signing away the right to sue.
You are also on the hook for unemployment.
- ilikehurdles 7y agoWouldn't a way to "work around" this be to incorporate or form a sole proprietorship for your own services?
- kerkeslager 7y agoIncidentally, you'd be crazy not to do this, as having a business, even a sole proprietorship, makes taxes a lot easier.
- j0ba 7y agoNot in California, with mandatory payroll tax even for single owner corps.