If you want to work from home, understanding the differences between what it means to be an independent contractor and what it means to be an employee is essential. If you’re going to choose a career that is right for you and your current household or responsibilities, you need to know what each position entails.
You have to understand the difference between working for someone else and working on your own. Can you be comfortable without something steady? How important is vacation time?
Determining what’s important to you and what each opportunity offers you can help you decide which work at home option is best for you, based on your own needs, schedule and income requirements. Using WAH Tips can really help you out, whether you want to work as a freelance writer, designer, programmer or even a transcription specialist.
Benefits of Working as an Employee
Working for an employer does not exempt you from paying taxes, although you are often required to pay less in taxes. Often, you are eligible for a tax refund at the end of each year, regardless of the job you have taken or the position you have filled.
When you are working for an employer, it is also more likely that you will have the ability to obtain health insurance from your employer. Regardless of your current health condition and the presence of any pre-existing conditions, you can probably get affordable coverage.
Advantages for Independent Contractors
Contractors who freelance independently have the ability to be their own boss, set their own hours, and select the type of work they wish to pursue. As an independent contractor, it is also possible to take vacations at your leisure. You get to work with specific clients at your own pace, once you have built a successful professional reputation in your industry.
A key difference
Working for an employer requires you to earn a set salary or a set hourly rate, as discussed and agreed upon between you and the employer prior to your hiring. Once you become an official part of the team under an employer, taxes are automatically deducted from each one of your paychecks, making it a bit simpler in terms of ensuring you are paying taxes at all times.
However, when you choose to work at home (WAH), you’re in charge of your own taxes. It is imperative to track and manage your own finances while also filing quarterly or monthly tax reports depending on your income level and the type of freelance and contract work you do each day.
For individuals curious about selecting WAH opportunities instead of working for a traditional employer, concern over paying their taxes is common. The ability to pay taxes properly is an important consideration for all working citizens. It is imperative to ensure that your efforts generate a steady and reasonable income after you account for taxes.
Learning more about the differences between working on your own and working for an employer is a way to truly distinguish which path is right for you. There are both personal and practical things to consider. You want to be happy, but you need to generate an income and make a sustainable living.
The more research you conduct on understanding the financial aspect of going into business on your own or working for an employer, the easier it becomes to choose the right career choice and path that suits your own lifestyle.