Work From Home - Are You an Employee Or an Independent Contractor? |
Posted: July 3, 2020 |
Working from home can also be called telecommuting, which means working from a remote location which usually refers to a home office. Those who work from home are called telecommuters. These telecommuters can be employees or independent contractors. When a telecommuter gets hired to do a job, they must clarify their status. Are they considered an employee of the company? Or, are they an independent contractor? This article will describe and differentiate between these two terms. The term "telecommuting" may assume employment because in some countries, it means allowing employees to work remotely at their homes. This is not the case when one applies for a job through the Internet. Usually, they get hired as an independent contractor, not as an employee. So, what are the differences of being an employee and being an independent contractor? Employees are treated like regular employees in real companies outside of home. Employers direct to them what to do, how and when to do it. They receive a salary according to the labor laws such as minimum wage, and they also pay taxes. They are also entitled to the benefits according to the company's compensation and benefits package/plan. Their employers expect them to have a distraction-free work environment because they expect to direct their employees in the daily activities. Usually, their schedule is fixed and it might be a 9-5 routine minus the real office working environment with real people around to work with. An independent contractor is commonly known as a freelancer or consultant, and they receive a per-project payment. An independent contractor has specific tax implications while employees' taxes are deducted from their salaries. Sometimes they are paid according to the number of hours worked, and this depends on the contractor's and the employer's agreement. Minimum wage and other benefits are not guaranteed, and most of the time, they are not offered. However, most independent contractors enjoy a flexible schedule so that they can do chores around the house or attend to other matters while keeping their jobs. Independent contractors are focused on the output that they can give their employers so they can work at their own pace. They have to submit the output on or before a specific date agreed upon by both parties. Most work from home jobs are done by independent contractors, but not all of them enjoy a flexible schedule. Jobs such as call center agents and telemarketers demand a distraction-free workplace and a fixed schedule, whether part-time or full-time. Make the decision today and start your path to working from home. If you ask me, I would rather be an independent contractor for the many benefits that are associated with it. I like to work from home at my convenience without anybody monitoring every move that I make. Being an independent contractor may not give you the benefits that being an employee will give you, but it can help you earn an unlimited income because you're free to accept as many jobs as you want. You can also start your own business by hiring other virtual workers to help you when your workload overflows. I believe that it compensates the retirement and other benefits given to other employees. Besides, there are many things that you can learn from taxfyle.com/blog/independent-contractor-taxes.
|
|||||||||||||||||||||||||||||||||||||||||||
|