1. INCORRECTLY CLASSIFYING YOUR INDEPENDENT CONTRACTORS
Classification is a hot topic when it comes to hiring variable workers, and for good reason. Accidentally misclassifying and incorrectly paying members of your workforce could result in criminal liability.
2. HIRING REMOTE WORKERS WITHOUT TAKING LOCAL REGULATIONS INTO ACCOUNT
No matter where your company is based, if you hire a remote worker across state or national lines, you have to comply with local regulations. Your business will need to be registered in that area, you’ll have to file taxes, your insurance requirements could vary, and so on.
3. NOT COVERING YOUR INSURANCE BASES
If you’re not providing insurance coverage, you should require proof that your independent contractor has their own. They should have general liability insurance and possibly errors and omissions insurance, depending on the type of services they provide.
4. HANGING ON TO DISPARATE TOOLS & SYSTEMS
In an ideal word, your entire business could function on one platform or system in which streamlined processes and data could easily flow across departmental lines. This disjointed structure means that no one has a comprehensive view of headcount or spend, and certainly not of risk.
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