• Can I hire people to work for me without starting a company

Hello,

I work as a independent IT contractor for a company. I would want to hire a couple to people to do the projects for me and pay them. Firstly is this legal? Secondly if I pay them how is the tax to be given? Do I have to give tax or them ?
Asked 6 years ago in Labour

3 answers received in 2 hours.

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13 Answers

1. You wish to hire a couple for a project. There is nothing illegal in this. You should execute a written contract with them though.

2. The remuneration paid to them will be taxable in their hands.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

1. To carry out any lawful work like finishing project in software sector is very much legal.

2. Since you are hiring only 2 persons the burden of tax is not much though the same would depend on the amount you are going to pay them.

3. if their salary crosses the threshold limit then they will pay the tax. Similarly if your income is also above the benchmark then you will also have to pay the tax.

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

You can engage people to work for you it is legal, the income shall be taxable in there hand.

 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

1) If the employees are less than 7 , you can go a head and work like freelancer work project. And pay them as per project wise.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

You can employ some employees for doing work and pay them their salaries 

 

2) it is not necessary to form a company 

 

3) you can carry on business as sole proprietor 

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

You have to open a firm and hire employees. They can be paid salary and it can be deducted as your office expenses and worker's pay.tax would have to be paid by the employees.

Regards 

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

As you are working as contractor then obviously the company for which you work shall require the bills for the work done having all the ingredients including GST. Thus meaning there by that they are mentioning your name in the return they filing for the purpose so if you hire the people you have to deduct their TDS as an employer including PF,ESI etc and to deposit the same you have to download the challans to pay the taxes , hence it is legal that you can hire the staff but if you will not follow the norms then all will be illegal.

Koshal Kumar Vatsa
Advocate, Gurgaon
2282 Answers
3 Consultations

It is legal, you can hire people to work for your company. It is mandatory for any company registered under Companies Act 1956/2013  be it private company or public co or MNC to deduct TDS on salary of employees provide the total taxable salary of the employee exceeds exempted income as per section 192B of Income Tax Act 1961. Further there is no such condition of having 20 employees or more than 20 employees.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

1. Absolutely, this is legal and you can have people working for you. Enter into an agreement with them, this will be better. 

Vibhanshu Srivastava
Advocate, Lucknow
9763 Answers
323 Consultations

Yes you can hire. Tax laws will be depending on their being individual or company. Or you bring proprietor or other entity

 

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

You dont have to pay the taxes for your employees even f they are your contract labors.

They should pay their own taxes if they come into the tax brackets.

You may pay taxes for your income alone.

You can very well hire their services on a contractual agreement basis with the conditions imposed accordingly in the agreement 

 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

Dear Sir,

Hiring a Virtual Employee over a full-time employee in India has a couple of interesting benefits you should consider:-

  • Cost to Company!

Hiring a full-time employee leads to additional costs like health care, taxes and office equipment.

When you hire a Virtual Employee (VE), you are paying only for the service provided.

  • Specialized Tasks

You can find Virtual Employees that specialise in fields like SEO, video editing, content writing or even social media marketing.

According to Glassdoor estimates, a full-time social media manager can cost twice that of a Virtual Social Media employee!

  • Hourly Wage

Cost is one of the major factors an entrepreneur or recruiter needs to consider before making a hiring decision.

You cannot hire employee of the year if they are simply unaffordable to your company!

With a typical wage of $8.20 dollars an hour, a virtual employee costs way lesser than their counterpart, the employee, at $15 dollars an hour.

And rightly so, they charge lesser because they get the flexibility to work from home as per their convenience and save on additional costs like transportation.

  • Salary Structure

A typical employee is paid a yearly 'package' for his or her services, regardless of whether or not there is any work assigned to be done.

When there is absolutely no need for him, he is laid off.

In comparison, a virtual employee is paid by the hour.

As a hiring manager, if you think your particular job/task require only 20 hours a week, outsource it to your virtual employee and pay him or her only for those 20 hours that you need them for.

  • Training and Upskilling

A virtual employee, like an employee, needs to undergo constant skill development and training.

The difference lies in the fact that they are responsible to train themselves and they do it at their own time and cost.

What you get is a skilled and upskilled employee, ready to get the job done.

  • Office Space

Office space is a major constraint, especially in metropolitan cities, considering the ever-rising real estate prices.

Before hiring an employee you need to analyze whether he or she will actually bring value to your firm or just act as a seat warmer.

A virtual employee works in silo.

By working remotely, they do not occupy any office space avoiding additional costs.

Whether they work from home, a cafe or a beach shack, it doesn't matter as long as they get the work done.

  • Duration of Hire

If you need a small task done and want to outsource it to someone, who will do the job for you?

An employee is a long-term commitment and will not be willing to work only 20 odd hours a week.

On the other hand, a virtual employee does exactly that.

They serve multiple clients at a time, each as per their requirement.

One client may require 10 hours a week, another 20 hours.

India is now a rapidly growing economy.

Today’s entrepreneurs and business owners are struggling to maintain a work life balance.

That’s where we, Wishup.co, come in.

Simply outsource your routine tasks to our in house team of virtual employees and they’ll get it done, be it work- realted tasks or personal matters at hand.

Netravathi Kalaskar
Advocate, Bengaluru
4951 Answers
27 Consultations

You can appoint them as assistant and payment shall be consider as personal expanse.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

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