if you hire a freelancer do you have to pay employees national insurance,taxes and pensions
if you hire a freelancer do you have to pay employees national insurance,taxes and pensions
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ANSWERS: 5
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What country are you in? I suspect it's not the US, so you'd have to find someone local to tell you. And much may depend on what sort of job it is, how long it will last, how much work the freelancer will be doing.
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fiachrab UK,im looking to hire someone to do one job/task/project -
Victorine Well, freelancers normally have a special tax status, and they pay their own taxes that cover national insurance and so forth out of the payments they receive. That would normally be the case for just one task, but again, if this project were to last for months, the situation might be different. You really need to discuss all this with the prospective freelancer and/or a tax expert.
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You can issue them a 1099 for their services and they will have to pay the taxes.
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mushroom
True, but in the US, if the business provides employee-type benefits such as insurance, a pension plan, vacation pay, or sick pay to the worker and the contractor does not offer his services to other parties, the IRS may still classify this as an employee relationship rather than as a contractor. https://www.irs.gov/taxtopics/tc762
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Well...it will help if you tell us what nation you are in. In the U.S. (which, from your wording, it sounds like you are NOT in) you would NOT pay those things because the freelancer would be a "contract laborer". That is: the freelancer's employer would be HIMSELF, and YOU would be treated as a CUSTOMER of the freelancer rather than as an employer. You might have to pay SALES TAX on whatever product or service the freelancer rendered (and the freelancer would collect that), but you would NOT have to pay any of the things you mention.
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that would depend on where you live and relevant industry standards.
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Give them a 1099 for their working wages.
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