Independent contractors vs employees

If you are going to hire employees, I strongly recommend using a payroll service. Currently I like Gusto and Sure Payroll for easy and inexpensive online services. I can help you set up an account with either of these, or with ADP, Paychex, Heartland, or QB payroll if you prefer full service. If you are thinking of hiring contractors, keep in mind that you can pay contractors for services performed and deduct it as a contract labor expense instead of salaries and wages like you would for employees. You would need to get a W-9 form, and I think it’s a good practice to only hire someone who has their own business license.  I also would recommend having a clear agreement in writing with them which includes compensation and termination clauses plus an NDA.  This could protect you in case the IRS or L & I tries to say they were an employee.  To that point, there are specific rules about what qualifies someone as a contractor.  This is a good article to read https://esd.wa.gov/employer-taxes/independent-contractors