I own a marketing business and often need a contractor to be onsite with me at an event or take photos of a client project. I struggle with how much to pay the contractor each time, for several reasons. I always want the number to be a decent, above “living wage” but of course, cost-effective for my business. Each time I have a project come up, I can’t help but calculate it into an hourly rate in order to come up with a number.
Since these people are NOT employees, I’ve been advised by my CPA that I cannot say “Hi, I’ll pay you $18/hr” for this work. I instead say “Hi, I will pay you this much lump sum for the work.” But, to come up with the lump-sum number, I decide about how long the project will take and usually price it around $20-25/hr.
I think about how you talk about employees and how differently you view money and the value people create.
Is there a better way I can do this?
Thanks so much,