Contractor vs employee

Hire employees when you want: Human resources on a permanent basis, management control over their assignment, schedule and compensation, and the expectation that they will work only for you.

If you want human services to be delivered by contract, where someone else manages the people, compensation and benefits, use contractors. Contractors make sense when a worker or workers are needed on a temporary basis to augment employees, or when you need a level of expertise for work that you don't want or need to permanently staff up for.

If you are tempted to classify as a contractor an individual who otherwise would be an employee in order to reduce payroll tax withholding or benefits, don't. The IRS has a 20-point definition of what a contractor is, and will hold accountable any employer who fails to classify de facto employees as contractors.