Choose a trusted PEO.
There’s only one way to rid yourself of all the HR and payroll issues altogether, outsource it! Find companies offering payrolling services, like a PEO or a Professional Employer Organization. If you choose to work with a PEO, they will become the legal employer of your freelance workers and will be responsible for all employer responsibilities. With this arrangement, you essentially become the client the freelancer is assigned to. You still have full control over all work-related concerns all the while staying compliant to the law. Aside from payroll, the PEO will take care of the freelancers’ taxes, insurance, benefits, and other HR and admin roles. So, how do you pay them? Well, the freelancers are usually paid on an hourly or per project basis, and the PEO will put an additional service fee on top of the freelancers’. Companies with a growing need for freelancers ideally use PEOs to reduce payroll complexity and to manage non-employee work relationship efficiently.
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