Are you a successful entrepreneur with a sole proprietorship? Is your company / webshop running so well that you really can't handle the work alone anymore? Then you can consider hiring staff. You then remain an entrepreneur with a sole proprietorship, because the term sole proprietorship does not refer to the number of employees working there, but to the legal form of the company (aha!).
So you can hire your own staff. However, this creates the necessary risks and red tape. This is the reason that, despite the often higher costs, entrepreneurs with a sole proprietorship sometimes opt for other options, such as freelancers, temporary workers, on-call workers and secondment. Read below what is what and how it works.
1 Hiring your own staff
Do you decide to hire your own staff? When you hire staff, you run certain risks, such as the poorly performing employee that you cannot just dismiss and the risk that you cannot meet your payment obligations because your company is going badly. In addition, you are obliged to continue to pay employees in the event of illness.
You will also have to arrange all kinds of things. For example, you have to keep a payroll administration. In addition, you must comply with labor legislation. This legislation obliges the employer to clearly describe the risks that his employees run and to take measures if necessary.
2 Working with freelancers
As an entrepreneur, you do not have to enter into an employment relationship with freelancers. You provide the freelancers who work for you with assignments (if there are any). Working with freelancers is therefore very flexible. Do you decide to work with freelancers? In that case, ask for a VAR statement or for a model contract approved by the tax authorities. The freelancers are then seen as entrepreneurs by the tax authorities. As an entrepreneur who works with freelancers, you do not have to pay payroll taxes yourself.
Are you asking a freelancer to fulfill an extensive assignment? Describe the assignment clearly and agree when the assignment must be completed.
3 Working with on-call workers
On-call workers are often employed in the catering and healthcare sectors. These on-call workers are called upon when there is (temporary) work. You can conclude a preliminary agreement with on-call workers. A preliminary agreement, stating the conditions that apply to a call, only becomes an employment contract if the on-call worker responds to a call (he is not obliged to do so). You can also conclude an employment contract with on-call workers. Will there be a call? Then the on-call worker is obliged to go to work.
4 Hiring temporary workers
Have you just received a large order and do you therefore need more skilled personnel in time? You can instruct an employment agency to look for a suitable employee. You can then hire this employee temporarily. Hiring staff through an employment agency is not cheap. The advantage is that you are not tied to the employee. Has the big order been completed? Then you can immediately end the collaboration with the hired employee.
5 Opting for payroll
Do you decide to start working with payrolling? You then take care of the recruitment and selection of suitable employees. The payroll company then takes care of many administrative matters, such as drawing up employment contracts, paying the salary and the holiday allowance and taking care of the payroll administration. By working with payrollers, who are on the payroll of the payroll company, you as an entrepreneur with a sole proprietorship save a lot of administrative hassle.
Is one of your employees absent for a long time, for example due to illness or pregnancy? It may be possible to hire someone from another company or from a secondment agency. When an employee is seconded, the employee usually remains on the payroll of the company or secondment agency that lends him/her. In this way you can have someone temporarily work in your company without much risk and hassle.
This guest blog is provided by Repay .