0173 - Managing the Bottom Line: The Pros and Cons of Independent Contractors vs. Full-Time Employees
Course Description
In this economy, many businesses are being forced to cut back on full-time staffers by hiring contractors to do the same work instead -minus the expensive benefits. As a result, it can often be difficult to tell employees and contractors apart. But there are significant differences, both in terms of workers' personal bottom lines and in the eyes of the IRS. With the PPP loans, companies learned there is an additional downside to using a 1099 workforce.
To better understand the nuances between the two designations, Daniel McCoy will examine the differences between a 1099 and W-2 employees, the advantages and disadvantages of each for your business and consequences of classifying incorrectly.
Course Outline
Agenda:
- What is a Full-Time Employee
- What is a 1099 Employee
- Advantages to Your Bottom Line
- Potential Disadvantages
- The Category Test
- Case Reviews: Notable Company Examples
Learner Outcomes
Attendees will gain an understanding of:
- The definition of a full-time employee
- The definition of a 1099 employee
- The advantages and disadvantages of full time and 1099 employees
- The Category Test
Notes
A Public Service and Outreach Unit of the University of Georgia. Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All programs of the UGA SBDC are open to the public on a non-discriminatory basis. Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance..