Learn How To Become An Independent Contractor
Monday, August 4th, 2008
Think you already know what this subject is all about? Chances are that you do not, but by the end of this article about the Independent Contractor, you will!
In response to economic, technological and social changes, workers with an entrepreneurial spirit and wise employers have created more alternative work arrangements and employment opportunities for independent contractors than ever before. Companies are not your employers per se but your clients; they hire your services, not you. If you’re the type of person who likes to settle in at a job, and dislikes ever-changing working conditions, then a more traditional permanent job might suit you better. However, if you’re the adventurous entrepreneurial type who likes new challenges, then working as an independent contractor might be right for you. To find out more information about this type of work arrangement, including pros and cons, and how to get started, visit any number of online resources that offer tips and advice on how to become your own boss.
Independent contractors are also known as consultants, freelancers, free agents, or just contractors, and they usually make more money than regular employees, because companies are willing to pay more for them. What makes this so appealing is that the client or company doesn’t have to pay benefits like health insurance or short-term disability premiums, unemployment compensation, social security, or Medicare taxes. Conversely, contractors don’t have the same job security as do traditional employees in addition to sick leave, vacation, and retirement accounts. Independent contractors are solely responsible for filling out their own paperwork and making their tax payments on time. Typically contractors pay estimated taxes quarterly in lieu of employer withholding, and according to the guidelines established by the Internal Revenue Service (IRS), you are either an employee or self-employed. There are also some great benefits to working for yourself like deducting business expenses acquired while working, which you can put in the bank to earn interest for future tax payments.
As you continue to read this article, pay special attention to how parts 1 and 2 relate to one another.
Visit the IRS online at www.irs.gov for more helpful information on becoming an independent contractor, as well as self-employment tax guidelines and guides designed to help get you started on the right track. You should also pay a visit to www.nolo.com, a legal information site offering quick answers for consultants, freelancers, and contractors including billing and record keeping suggestions that you’ll need to organize your income and expenses. Learn how to become an independent contractor now, and start doing your own thing! Increase your income by providing clients well sought after services with your own unique set of skills and abilities. You don’t have to work in a traditional job atmosphere if you don’t want to, now do you?
This article about Independent Contractor is meant to both inform and entertain those who read it. Hopefully, we have accomplished both goals.
Tags: employment opportunities, job security, unemployment compensation, wise employers, working conditions
