A government or a company may decide to outsource services from a small business or individual, services that can be done from their offices by their employees. This type of business is called Independent contracting (Self-employment). Outcomes from a research showed that Individuals who are self-employed highly contribute towards the changes that occur in economic strength and growth. This was after a study done by Phillip Romero, Professor of Finance from University of Oregon in California.
For independent contractors to maintain that level and not to be seen as employees. Different rules have been set for them to follow. They should be capable of retaining mandate of work they are given.
This can be done through dividing working hours to get things done within the agreed time, being in charge and making payments of employed workers getting an office. On the other hand, the work can be done from the other company's office. This can be done only if agreed and not asking for working guidelines from the hiring firm.
This guideline is important because it clearly shows the difference between independent contractors and employees. The employees are told exactly what to do and how to do it by their employers. This is not the case where independent contractors are concerned.
Profit and loss making is a sign used to show that contractors can operate independently. Small businesses and individuals should be able to show that they incur running costs for the business. This can be proved using receipts showing rent payment, internet service payment, pay slips, and receipts for buying machines and equipment. The contractor is able to know if they are likely to make a profit or loss when preparing the invoice.It's better to have an all-inclusive invoice at the end of the project that has total expenses, than daily billing to the hiring firm to avoid reducing the profit margin due to low charges.
Wider services provision is also vital. The independent contractors should not focus on marketing their services to an individual or one company. Intense marketing should be done by the contractors getting well designed business cards and letter heads, signing up in different professional organizations, getting a website, appearing in telephone and postal directories, attending trade exhibitions, cold calling of prospective clients and print advertising via newspaper, journals or magazines. The more customers independent contractors have the less their status is questioned.
It is vital to use written agreements when an independent contractor and a firm decide to business. It should clearly state that the services provided are through an individual contractor. It should also note that the hiring firm should not dictate how the work is done as long as results are achieved. Another guideline is for the independent contractors to firmly state that they are not taking up the task as an employee.
Registration of small and new businesses has greatly increased in California and is considered to be one of the highest. This has greatly improved the level of employment in this state. Phillip Romero knows the danger of restricting or plans to remove independent contractors.
For independent contractors to maintain that level and not to be seen as employees. Different rules have been set for them to follow. They should be capable of retaining mandate of work they are given.
This can be done through dividing working hours to get things done within the agreed time, being in charge and making payments of employed workers getting an office. On the other hand, the work can be done from the other company's office. This can be done only if agreed and not asking for working guidelines from the hiring firm.
This guideline is important because it clearly shows the difference between independent contractors and employees. The employees are told exactly what to do and how to do it by their employers. This is not the case where independent contractors are concerned.
Profit and loss making is a sign used to show that contractors can operate independently. Small businesses and individuals should be able to show that they incur running costs for the business. This can be proved using receipts showing rent payment, internet service payment, pay slips, and receipts for buying machines and equipment. The contractor is able to know if they are likely to make a profit or loss when preparing the invoice.It's better to have an all-inclusive invoice at the end of the project that has total expenses, than daily billing to the hiring firm to avoid reducing the profit margin due to low charges.
Wider services provision is also vital. The independent contractors should not focus on marketing their services to an individual or one company. Intense marketing should be done by the contractors getting well designed business cards and letter heads, signing up in different professional organizations, getting a website, appearing in telephone and postal directories, attending trade exhibitions, cold calling of prospective clients and print advertising via newspaper, journals or magazines. The more customers independent contractors have the less their status is questioned.
It is vital to use written agreements when an independent contractor and a firm decide to business. It should clearly state that the services provided are through an individual contractor. It should also note that the hiring firm should not dictate how the work is done as long as results are achieved. Another guideline is for the independent contractors to firmly state that they are not taking up the task as an employee.
Registration of small and new businesses has greatly increased in California and is considered to be one of the highest. This has greatly improved the level of employment in this state. Phillip Romero knows the danger of restricting or plans to remove independent contractors.
About the Author:
The home page found at www.artimperativequest.com provides details about Phillip Romero. As a person of note in the art world, biographical information can be seen at http://www.artimperativequest.com now.