4 Benefits of Working with Form 1099 Professionals
Working with the right workforce is crucial to the success of any business. Different studies suggest that 70 to 80% recurrent expenses of any business are associated with its workforce which is similar to 1099 professionals
From bookkeeping and taxation standpoint, US-based businesses have two options to work with: either hire workers full-time or work with them on an ad-hoc basis. The former group of employees is taxed through form W2 while the latter group, usually freelancers and independent contractors, file their returns through form 1099.
In this blog post, we are going to discuss what benefits a business, particularly the ones that are operating at a small scale, can get by hiring independent contractors. In tax jargon, these contractors are also called 1099 professionals.
1) 1099 Accountant professionals Offer a More Flexible Arrangement
Freelancers and independent contractors don’t stay with you for the long haul. You hire them for a certain project or a task. This flexible arrangement where you pay for the ‘work’ instead of ‘time’ goes really well when your venture is more project-oriented.
This flexible arrangement will also save you from bookkeeping, accounting, and tax preparation overwork.
2) You Able to Get Specialized Expertise on Board with 1099 Accountant professionals
People who offer their services as independent contractors usually have specialized credentials in the given sphere of work. Here too, a business can keep its expenses in check by hiring an independent contractor instead of inducing a full-time employee with the same skillset and qualification.
3) Accountants Lessen Legal Liabilities
Many bookkeeping and accounting experts advise budding ventures to work with 1099 professionals because it entails lesser legal liabilities. Firstly, you are not responsible for any workers’ compensation package. Independent contractors usually have their own professional coverage. Moreover, you are less likely to face employee dispute claims that are pretty common otherwise.
4) Easy Bookkeeping and Tax Preparation
If you are not working with any tax preparation firm such as My Count Solutions, then filling returns of full-time employees can turn into a management nightmare. Hiring 1099 professionals also help you out in this regard. Since you don’t have to withhold taxes or take care of payrolls, it becomes quite easy to deal with bookkeeping and financial statement preparations pertaining to 1099 professionals.
While it’s evident that there are certain monetary and management benefits to work with independent contractors or 1099 professionals, one can’t shy away from the importance of full-time employees or W2 professionals. In the next blog post, we will shed light on the benefits of working with W2 professionals.
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