Dear Sir,
I have a website to display different kinds of articles/stories from various writers. However, the issue is that I require a few home-based typists to format all the articles/stories uniformly so that I can showcase them on my website.
1. So, I would like to understand what liabilities I should have towards my home-based/part-time employees.
2. Are the laws related to contract labor applicable to freelance workers?
3. What are the essential things that need to be included in the agreement to be signed by the employees?
4. Should I request a refundable security deposit from them to ensure they take their work seriously?
a. If yes, would I be required to pay tax on this security deposit since it is refundable based on the good work of the freelance worker?
5. Do I bear any liability towards my employees if they submit careless and poor work that I cannot use?
6. Should I pay them the full amount of their payment, or do I need to deduct any taxes from their salary?
I hope you can provide guidance on these queries. Thank you.
From India, Bangalore
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I have a website to display different kinds of articles/stories from various writers. However, the issue is that I require a few home-based typists to format all the articles/stories uniformly so that I can showcase them on my website.
1. So, I would like to understand what liabilities I should have towards my home-based/part-time employees.
2. Are the laws related to contract labor applicable to freelance workers?
3. What are the essential things that need to be included in the agreement to be signed by the employees?
4. Should I request a refundable security deposit from them to ensure they take their work seriously?
a. If yes, would I be required to pay tax on this security deposit since it is refundable based on the good work of the freelance worker?
5. Do I bear any liability towards my employees if they submit careless and poor work that I cannot use?
6. Should I pay them the full amount of their payment, or do I need to deduct any taxes from their salary?
I hope you can provide guidance on these queries. Thank you.
From India, Bangalore
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Hi, I suggest you team with a Chartered Accountant and Intellectual property Expert/Solicitor who can guide you correctly. Good Luck
From Saudi Arabia, Riyadh
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297From Saudi Arabia, Riyadh
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Dear UKMITRA tnx for your reply. Should I meet with a CA or advocate?
From India, Bangalore
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From India, Bangalore
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Dear Sir can i join your company if yes please cont. 9728499023 sandeep Kumar Gurgaon
From India, Delhi
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From India, Delhi
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There should not be a concept of employment between you and the freelancer. You should not have any supervision and control over his work. Have only an agreement of a contract for service with him.
Varghese Mathew
09961266966
From India, Thiruvananthapuram
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Varghese Mathew
09961266966
From India, Thiruvananthapuram
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Hi,
You need to meet both. A CA will guide you on tax and statutory compliance, whereas an Advocate/Solicitor will help protect your business interests, including local statutory compliance.
Of course, you need to have your own QA/QC/Administrator on your team, hired by you. All posts must pass through your hired QA/QC/Administrator, who will be finally responsible for all content, including yourself.
Good luck.
Ukmitra
From Saudi Arabia, Riyadh
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You need to meet both. A CA will guide you on tax and statutory compliance, whereas an Advocate/Solicitor will help protect your business interests, including local statutory compliance.
Of course, you need to have your own QA/QC/Administrator on your team, hired by you. All posts must pass through your hired QA/QC/Administrator, who will be finally responsible for all content, including yourself.
Good luck.
Ukmitra
From Saudi Arabia, Riyadh
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Dear Asn6,
Answers to your questions according to my knowledge are as follows:
1. I just want to know what liabilities should I have towards my home-based/part-time employee?
Ans: You have no liability towards part-time freelancers. However, you should not consider them as employees on salary. Instead, you should pay them fees for the freelance job work they do.
2. Is the law related to contract labor applicable to freelance workers?
Ans: The law relating to Contract Labor Regulation and Abolition Act (CLRA) is not applicable in this case. The agreement between you and them, whether expressed or implied, is considered a "contract for work." Additionally, they are not working on your premises.
3. What are the necessary things to mention in the agreement to be signed by the employee?
Ans: It is essential to mention that the job work given to them is on a freelance basis and that they will work from their home. They will be paid fees for their freelance job work. It is important to clarify that there is no employer-employee relationship.
4. Should I take any refundable security deposit from them to ensure their commitment to work seriously?
If yes, should I pay tax on this security deposit since it is refundable based on their performance?
Ans: You can take a refundable security deposit. There is no tax liability on it as it is refundable based on their work performance.
5. Should I have any liability towards my employee if they submit careless and poor work that I cannot use?
Ans: Please refrain from referring to them as employees. You can hold them accountable for their careless and poor work. Deductions can be made from the security deposit for such instances. However, you are not liable for their negligence and substandard work.
6. Should I pay them the full amount of their payment, or do I need to deduct any tax from their earnings?
Ans: Avoid using the term "salary." Tax Deducted at Source (TDS) is applicable as per the work contract rate, but ensure you have a Tax Deduction and Collection Account Number (TAN) allotted.
I hope this helps clarify your queries. Let me know if you need further assistance.
From India, Mumbai
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Answers to your questions according to my knowledge are as follows:
1. I just want to know what liabilities should I have towards my home-based/part-time employee?
Ans: You have no liability towards part-time freelancers. However, you should not consider them as employees on salary. Instead, you should pay them fees for the freelance job work they do.
2. Is the law related to contract labor applicable to freelance workers?
Ans: The law relating to Contract Labor Regulation and Abolition Act (CLRA) is not applicable in this case. The agreement between you and them, whether expressed or implied, is considered a "contract for work." Additionally, they are not working on your premises.
3. What are the necessary things to mention in the agreement to be signed by the employee?
Ans: It is essential to mention that the job work given to them is on a freelance basis and that they will work from their home. They will be paid fees for their freelance job work. It is important to clarify that there is no employer-employee relationship.
4. Should I take any refundable security deposit from them to ensure their commitment to work seriously?
If yes, should I pay tax on this security deposit since it is refundable based on their performance?
Ans: You can take a refundable security deposit. There is no tax liability on it as it is refundable based on their work performance.
5. Should I have any liability towards my employee if they submit careless and poor work that I cannot use?
Ans: Please refrain from referring to them as employees. You can hold them accountable for their careless and poor work. Deductions can be made from the security deposit for such instances. However, you are not liable for their negligence and substandard work.
6. Should I pay them the full amount of their payment, or do I need to deduct any tax from their earnings?
Ans: Avoid using the term "salary." Tax Deducted at Source (TDS) is applicable as per the work contract rate, but ensure you have a Tax Deduction and Collection Account Number (TAN) allotted.
I hope this helps clarify your queries. Let me know if you need further assistance.
From India, Mumbai
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Hello,
The clarifications given by Mr. Keshav Korgaonkar are to the point and correct. I may add that you need to deduct the TDS at a rate of 10% on the contract payment and deposit it with the income tax department as a professional fee. You also need to have both a TAN number and a PAN number for your startup enterprise.
From India, New Delhi
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The clarifications given by Mr. Keshav Korgaonkar are to the point and correct. I may add that you need to deduct the TDS at a rate of 10% on the contract payment and deposit it with the income tax department as a professional fee. You also need to have both a TAN number and a PAN number for your startup enterprise.
From India, New Delhi
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