• You are not responsible for providing workers' compensation coverage.
• You do not pay unemployment insurance tax.
• You do not pay Social Security tax.
• You will not need to withhold income taxes or pay local payroll taxes.
Bookkeeping may be simpler since payments are based on a contracted
amount without reporting requirements, other than Form 1099-MISC, which
must be sent to the IRS in certain cases.
• There is no need to keep timesheets, hour logs, or salary-based logs.
• You do not need to provide tools, equipment, or materials.
• You cannot supervise closely because the independent contractor chooses the manner and method of doing the work.
You cannot control who actually performs the service since an
independent contractor has the right to hire and fire their own labor.
• You may lose some flexibility in completing projects because independent contractors decide their own schedules.