ABSTRACT
As a manager, why would you want to hire an independent contractor? The answer is that there may be substantial payroll savings in doing so. Independent contractors do not receive company benefits like pension plans, health insurance, life insurance, worker's compensation insurance, paid vacations, holidays, or retirement plans. In addition, Social Security, Medicare, unemployment insurance, and state and local taxes do not have to be paid for these employees and none of the forms associated with theses taxes have to be filed. The only tax form needed is the 1099-MISC form, which must be filed if the independent contractor received more than $600 in one year.
