Today’s small businesses are keeping an eye on their overhead costs. Which means, that to hire only one employee can end up costing them not only that employees salary, but also their insurance, training if needed, unemployment insurance tax, workers compensation insurance, any other benefits given to the employee, and obtain an Employer Identification Number (EIN). Along those same lines, an employer must also obtain an Employee Eligibility Verification within three days of hire.
Little wonder that small start-up businesses are leery about adding employees that may or may not be needed. With the expense of running the business, the economy makes it tough for small businesses to be able to afford the costs of expanding. Many of these businesses are looking at alternative ways to get the work done with the large overhead.
This is where hiring freelance workers can come into play. Freelance workers can be hired to do the same amount of work at a fraction of the cost, eliminating all the pay-out that would be normally required to actually hire an in-house employee. For the business, this works better because it is like having a disposable worker. Easily obtained, and let go when the job is finished.