Employee vs. Contractor

[abt303]

Thanks for this list, I am hoping to make the transition to working from home in the next few months. I actually have a first interview with Extended Presence today. Can anyone offer feedback on them? I like that their offices are local for me, though I'm not sure if that really means much when working from home!

Additionally, does anyone have any additional suggestions of places for me to submit my resume? I'm a seasoned Inside Sales Rep/ Business Development Specialist with several years in the Customer Service Sector as well.

Thank you!

[Kevin2moon]

really appreciate the info...this is an excellent post for a newbie here!!

[coachkat]

When I found out what I could deduct in expenses from being an independent contractor, I would NEVER go back to being an employee!

For the last 3 years I have made close to 6 figures in my home-based business as a contractor to a sales floor that sells my training programs.

I have received over $7,500 in refund money EACH YEAR from all the credits and deductions you can take. I NEVER paid any money in quarterly taxes and I STILL got huge refunds from the credits and breaks the government gives you JUST because you are self-employed as a contractor.

You just have to keep track each month, what you spend your money on and learn about all the deductions you can take. Most tax prep software shows you all the deductions you can take.

The only draw back is no benefits, however, you can join an association in your field with thousands of members and get great health benefits at a low cost. Most employers these days don't cover much of your health insurance costs, so it still comes out of your paycheck. So, either way, you still have to pay for your insurance.

So, some things to think about as you look at all your options. It is actually more beneficial to be a contractor.

[dmmrich]

I just wanted to thank you for this article

[dean19693]

Originally Posted by coachkat

When I found out what I could deduct in expenses from being an independent contractor, I would NEVER go back to being an employee!

For the last 3 years I have made close to 6 figures in my home-based business as a contractor to a sales floor that sells my training programs.

I have received over $7,500 in refund money EACH YEAR from all the credits and deductions you can take. I NEVER paid any money in quarterly taxes and I STILL got huge refunds from the credits and breaks the government gives you JUST because you are self-employed as a contractor.

You just have to keep track each month, what you spend your money on and learn about all the deductions you can take. Most tax prep software shows you all the deductions you can take.

The only draw back is no benefits, however, you can join an association in your field with thousands of members and get great health benefits at a low cost. Most employers these days don't cover much of your health insurance costs, so it still comes out of your paycheck. So, either way, you still have to pay for your insurance.

So, some things to think about as you look at all your options. It is actually more beneficial to be a contractor.

Private contractors always make more because private contractors work for themselves as opposed to making a company more wealthy.

Companies that pay minimum wage or close to it capitalize from the fact that many people lack the confidence and mindset to work for themselves. Sadly, many people look at $10.00 an hour as being safer than doing their own thing and potentially making 5,6 maybe even 7 figures a year.

[nhanvan]

Of course, they are the one who hiire you after all.

[CherylAH]

I stopped being an "employee" about 8 years ago and love it. Yes, it is more time consuming because you do have to be able to keep good records with respect to your expenses. I do find that the pros far outweigh the cons. People think that it's scary being out on your own, but you are so much more in control of what you do. My ex husband had a 9-5 job with taxes taken out and we just kept great records of my expenses and we always received a tax refund because of all the little things that you end up spending when you work ended up being deductions because I ran my office from home.
Cheryl Hess

[breezy81]

I've worked as a contractor for a couple years now, and as I understand it, the tax situation is not nearly as scary as it used to be. I do our taxes every year and yes, there is a bit more paperwork to fill out, but as long as you keep good documentation and only take deductions, etc. that you're entitled to, you should be fine. I wouldn't let the contractor tax stuff scare you off from what could be a great job!

[JuStev5Pe]

Thank you so much for posting that list!

[superpriya]

That list is contractors pretty awesome even considering it was posted two years ago. For me and my husband, contracting in the past has given us the flexibility we needed so badly to spend time with our children while pursuing our startup business passion. He did most of the contracting work while we ran our businesses. Then there are tax benefits to contracting also. We have children so they also factor into whatever income we've made in the past. In the beginning it's a little rocky but compared to working a 40 hour salaried job with near zero flexibility and free time to pursue a business, it's a better alternative in my book.