Being an independent contractor is
not as hard as many would believe. Independent contractor benefits are
limitless if you are diligent with your work as you would for someone
else. An individual working as an independent contractor will be able
to set her own hours and work in the convenience of her own home rather
than rushing into the office.
contractors are made up of freelancers and consultants. An independent
contractor is an individual who performs services to the public without
having the status of an employee. Many independent contractors have
their own business, trade or profession. In other words, they are in
business for themselves. Independent contractors are people with their
own practices such as graphic artists, accountants, doctors, carpenters
and plumbers. There are also many freelancers in highly specialized
jobs, while others offer technical skills such as engineering, computer
programming, writing and accounting. Working as a freelancer, however,
has its share of advantages and drawbacks.
Benefits of Being an Independent Contractor
you are working as an independent contractor, you are your own boss.
You also get to choose your own work hours. You can work at home or
even while you are on a Caribbean vacation for as little or as much
time as you want. Independent consultants are considered to be masters
of their very own economic fate. Their income depends on the quantity
and quality of their work.
an independent contractor, you get to earn more than those working for
other people. According to studies conducted by the Wall Street
Journal, independent contractors are usually paid 20 to 40 percent more
compared to regular company employees. There are many firms who would
opt to hire them since they don't have to spend on social security
taxes, sick leaves, health insurance, etc.
contractors get to have many tax benefits not available for regular
employees. There are no state and federal taxes withheld from your
payroll. There are also many business related tax deductions that an
independent contractor can deduct from her income taxes such as office
expenses, travel expenses, equipment and insurance costs, utility
expenses, and entertainment and meal expenses.
Pitfalls of an Independent Contractor
an independent contractor doesn't offer any job security. When you
don't have an existing business, you don't get paid. The income you
have will depend upon the number of projects that has been offered to
are no company benefits. Independent contractors don't have
unemployment insurance benefits, health insurance, sick leave, vacation
also take the risk of not getting paid. There are some independent
contractors who get scammed or get paid by their clients at a very late
time; this means the usual bimonthly payment is usually not feasible.
There are several federal and state laws that protect employees from
exploitation and discrimination, but only a few are applicable to
independent contractors. Most of these contractors are also made liable
for their business debts.