Pros include:
• 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.
Cons include:
• 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.