Question

You are the owner of a business who requires assistance in many areas. You operate in a time of Covid-19

1. Are you seeking the services of an employee or an independent contractor? Why? ( Canada )

Answer 1

In this current situation of Covid 19, hiring independent contractor is much more profitable as compared to a regular employee. This is due to following reasons:

• Saving of money. By hiring independent contractors I can save on many expenses. These include employer-provided benefits, office space, and equipment, my share of the employee's Social Security and Medicare taxes, which totals 7.65% of the employee's compensation, state unemployment compensation insurance, and
  workers' compensation insurance. As a result my payroll cost will be reduced.
• Staffing Flexibility. I can hire an Independent contractor for a specific task or project, knowing that the worker will be gone when the job is finished. I won't have to face the trauma, expense, and potential legal trouble that can accompany firings and layoffs. Moreover independent contractor is expert in his job. This will help me in saving on training and other costs.
• Protection from lawsuits. Independent contractors are not protected by many laws as compared to employees. Employees can sue employer on ground of unlawful termination but independent contractors cannot do so. However certain exceptions are there.