On one hand, hiring a freelancer can be an inexpensive way to get work done quickly as well as a much-needed stress relief. But on the other hand, freelance staffing can be a headache especially when it comes to finding reliable people or managing remote workers.
Here are four things to do before you hire a freelancer:
Determine IRS reporting obligations
Does your business have withholding and reporting obligations to the IRS? According to the IRS
, if a business hires an independent contractor based in the United States, it is required to report payment over $600 yearly using Form 1099-MISC.
Request a portfolio of work, testimonials, or recommendations from former clients
Even if a freelancer comes highly recommended from a friend, you should conduct your own review of their past work and
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Be clear on your goals and set expectations up front
To avoid miscommunication with freelancers, conduct a kick off meeting to set expectations. Here are a few questions to consider:
- What’s your preferred means of communications for status updates—face to face, email, video conference or phone meetings?
- Do you prefer weekly or bi-weekly updates?
- What’s the project timeline?
- What’s the format for the final deliverable?
- Is the project an hourly or fixed rate project?
- How many revisions are allowed?
- What is the number of hours designated for the work?
- What’s the invoicing process?
Create a legally binding contract
To avoid work disputes, create a contract and make it official by having each party sign and date the document. Contracts may include project specifications including the scope of work, compensation, a description of services and grounds for either party to terminate the contract, such as missed deadlines and payments.