Page 7 - White Paper-Independent Contractor Laws
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employer’s share of payroll taxes (7%), pay into unemployment, and take out


               workers compensation insurance.


                       However, this financial exposure is less than you might assume, and your


               assumptions may be driven by some misconceptions about the actual costs and


               benefits  For example:



                          •  The costs associated with payroll are not fixed, and are proportionate


                              to the size of your payroll, which means the absolute cost of switching


                              to payroll may not be as much as you think if you have a small staff or


                              temporary or occasional workers.


                          •  You can still employ people on an “as-needed” basis as W2


                              employees, something employers commonly misunderstand.  By


                              making someone an employee, you do not have to commit to a certain


                              number of hours- all that is changing is the way you pay them for the


                              hours worked.


                          •  Unless you have more than fifty employees, putting someone on


                              payroll will not obligate you to provide health benefits.



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