Will they be employees or independent contactors?
I’m not a legal expert but my understanding is that there are a lot of potential pitfalls to bringing recruiters on as independent contractors. The IRS wants employees to be paid as employees, not as contractors. Their rules are set up in a way to make it very hard to for our industry to use independent contractor status for recruiters. For instance, if your virtual employee is a contractor, he should be able to do the same work that he does for you for one of your competitors. Additionally, I do not think you can require activity reporting from a contractor. If you want to be safe, hire the person as an employee with a $1,000 draw and you’ll be able to sleep better at night. The seven questions above are just a few of the many questions you must answer before you think of hiring a virtual employee. Too often I get called in as a consultant after the person has been brought on board and there is already a problem with the arrangement. The virtual model can work well but it requires mor
