header curve
header curve

So You Want to be an Independent Contractor

So You Want to Be an Independent Contractor
06 Nov 2017
Share

So You Want to Be an Independent Contractor

Confused about what it means to be an Independent Contractor? Maybe you are working for a business but you want to start your own business.

Maybe your employer has suggested that you could work at home, and they will change your status to that of an Independent Contractor.

Before you make this change, you should know about some of the pros and cons of working independently.

Benefits

  • Independence. You may be able to work your own hours from whatever location you choose depending on the type of job. You should be able to negotiate pay rates and a payment schedule. You will have to keep records required by your host business such as timesheets etc.
  • No Tax Withholding. Some people consider it a benefit that the payments you receive as an independent contractor don’t have income tax withheld. This can be a curse if you don’t put away funds to cover this debt. It will come home to roost every year.
  • Deducting Business Expenses. Expenses you pay to run your independent contractor business are tax deductible. Check what is and is not an “approved expense”, never assume.

Drawbacks

  • No Guarantee of Income. Being independent also means you don’t get a regular paycheck. If you are lucky enough to work for one or more clients who pay you regularly, that’s great. Manage your cash flow and have a slush fund to cover you through lean times.
  • No Benefits. One of the main reasons people stay employed is to have employer-paid benefits such as healthcare. If you need health insurance, you can get it but you will need to pay for it.
  • You Still Pay Taxes. As an Independent Contractor, you still have to declare all the income from your work and you still must pay taxes and any other levies required on that income.

TIP: An Independent Contractor can have a contract. Get a written contract from each person or business you work for. Having a contract spells out “what happens when.” Having a contract can settle many disputes before they start, and you can take a contract to court to get paid, if necessary.

If you need further guidance on the benefits and drawbacks of being an Independent Contractor, consider a consultation with us. This is a critical decision which can affect your future wealth creation and your current living standards.

.

Download our Ebook

By providing your email address, MCA will send a copy of the Ebook to your email.

* indicates required

To see how we handle your personal data, click here.

You can also unsubscribe at any time by clicking here.

We may transfer your personal data to third parties such as Zoom/Mailchimp/Boma/YouTube and while we are not responsible for the privacy policies of other organisations, we acknowledge that we are a joint controller with those organisations regarding your personal data. Learn more about Mailchimp/Zoom/Boma/YouTube privacy practices here.

.

Claim my free place now!

By providing your email address MCA will register your place on our upcoming webinar.

* indicates required

To see how we handle your personal data, click here.

You can also unsubscribe at any time by clicking here.

We may transfer your personal data to third parties such as Zoom/Mailchimp/Boma/YouTube and while we are not responsible for the privacy policies of other organisations, we acknowledge that we are a joint controller with those organisations regarding your personal data. Learn more about Mailchimp/Zoom/Boma/YouTube privacy practices here.

.

Request a copy of the recording!

By providing your email address MCA will email you a link to watch our latest webinar.

* indicates required

To see how we handle your personal data, click here.

You can also unsubscribe at any time by clicking here.

We may transfer your personal data to third parties such as Zoom/Mailchimp/Boma/YouTube and while we are not responsible for the privacy policies of other organisations, we acknowledge that we are a joint controller with those organisations regarding your personal data. Learn more about Mailchimp/Zoom/Boma/YouTube privacy practices here.