Creators and Contractors: What You Need to Know

Work as a content creator can be never-ending! Writing, filming, editing, posting, marketing, social media, the list goes on and on. That’s when hiring independent contractors comes in. From video editors to graphic designers and virtual assistants, you can delegate tasks to contractors so you can focus your expertise elsewhere!

But before you start outsourcing, it’s important to understand the legal, financial, and operational aspects of working with contractors. Most importantly, how to handle taxes!

What Is an Independent Contractor?

An independent contractor is a self-employed individual or business you hire to perform specific tasks without making them an employee. This is especially important as you are growing your content creation business, because your needs may shift on a month-to-month basis, and keeping employees busy can be challenging. As your content creation business grows, hiring part-time and full-time employees may make more sense.

Unlike employees, contractors:

• Work on a project-by-project basis
• Set their own schedules
• Provide their own tools and equipment
• Handle their own taxes and benefits

It is important to ensure that you are treating your contractors as contractors and not employees. Employee misclassification can lead to hefty fines.

For content creators, common contractor roles include:

• Video editors for YouTube, Shorts, Reels, and TikTok content
• Graphic designers for branding, thumbnails, and marketing materials
• Social media managers to help with engagement and content scheduling
• Writers for scripts, captions, and website content
• Photographers and videographers for professional shoots

Why Hire Contractors as a Content Creator?

As your audience and workload grow, you’ll likely hit a point where you can’t do it all yourself. Contractors allow you to:

• Save time by offloading repetitive tasks
• Increase quality with specialized skills
• Scale your business without the commitment of full-time employees
• Stay flexible since you can hire for specific projects as needed

The Legal Side: Contracts & Agreements

Hiring a contractor isn’t as simple as sending them a payment. To protect yourself and your business, always have a contract in place. A good contractor agreement should cover:

• Scope of work: Clearly outline the tasks they’ll complete
• Payment terms: Specify rates, due dates, and invoice expectations
• Deadlines: Set clear timelines for project completion
• Confidentiality: Ensure your content and business details stay private
• Ownership rights: Specify who owns the final work (important for video content, branding, etc.)

Using platforms such as Upwork or Fiverr, or direct agreements, can help streamline this process.

Paying Contractors: The Tax Implications

Because contractors are not employees, you don’t withhold taxes from their payments. Instead, they are responsible for their own self-employment taxes. Here’s what you need to do:

1. Collect a W-9 form: If you’re based in the U.S. and paying a contractor more than $600 per year, request a W-9 to collect their tax information. Your contractors can download this free form from the IRS website.
2. Issue a 1099-NEC: At the end of the year, you’ll need to provide a 1099-NEC form to any U.S.-based contractor you paid more than $600.
3. Use secure payment methods: Your contractor may send an invoice that offers online payment options. If not, then use a secure payment method, such as PayPal Goods and Services, Wise, or your business banking online payment system.

Taxes are a big benefit of paying contractors. The work you pay them to perform is tax-deductible! Be sure to track their fees because they will save you big when tax season rolls around. Follow the steps above to keep your business up to date with the tax code.

Managing Contractors Effectively

To get the most out of your contractors, treat them as valued professionals. Set clear expectations, define deliverables, set deadlines, and have a feedback process. Communication is key and providing constructive feedback will help them understand your style and preferences.

Use tools like Slack, Asana, or Trello to stay organized and ensure that projects are moving forward as scheduled. Respect your contractor’s time and rates. Good contractors are worth the investment. Don’t try to micromanage their time or try to get them to do more work for the same price. This type of nickel-and-diming can hurt your relationship over time. Trust that they’ll follow your process and deliver

Conclusion

Hiring contractors can help content creators grow their business without the commitment of full-time staff. By understanding contracts, payments, and best practices, you can build a reliable team that supports your creative vision. Best of all, their fees are deductible so you can lower your tax bill.

Need some extra help tracking those expenses? We work exclusively with content creators to manage their tax and accounting needs. Book a call with us so we can see how we can work together!