Independent Contractor Agreement – You’re Rights and Responsibilities as an I.C.
If you’ve been searching for ways to make money from home – or you have a skill that you want to outsource, you’ll probably end up looking for a position as an Independent Contractor. The lines between Independent Contractor vs. Employee may be confusing at first. If you’re going to sign an Independent Contractor Agreement, there are some things you need to be aware of beforehand that will save you the headache of the IRS later.
Independent Contractor Agreement
When you sign on as an Independent Contractor, you are agreeing to trade your skills or a specific service for a monetary stipend. Each company will have their own rules/guidelines and the pay will vary. Some companies will give you an hourly wage while others will pay you per completed assignment.
Companies such as Working Solutions hire independent contractors to be outsourced to a wide variety of companies with many different job opportunities. However, the most popular types of positions are customer service jobs which may or may not include incoming and outgoing sales calls.
Make sure you read all the fine print in your independent contractor agreement before signing!
Independent Contractor VS Employee
As an Independent contractor you may or may not have a constant stream of work. Successful Independent Contractors will work with more than one company if they wish to make being an I.C their full-time job or sole source of income.
Many companies will require a background check to be done at the expense of the I.C.
While you have more freedom to choose your working hours as an Independent Contractor, some companies require a specific number of hours per week with specific time slots that need to be filled.
With an Independent Contractor Agreement, your pay is perhaps the most vital difference! You will not be taxed before receiving your paycheck. This means that you will have to pay your taxes during tax season. If you make more than $600 with any given company, you will have to file your taxes to comply with the IRS standards.
Why do employers do this? It’s because they don’t have to pay their portion of taxes to the government as they would an employee. It’s similar to being self-employed. You can expect to pay about 30% of your wages in taxes – OUCH! I know it hurts, but that’s the price you pay when you trade an employee position for an I.C – where you are essentially your own boss.
Most Independent Contractors hire a CPA to handle their taxes… I do! And it’s easier to pay quarterly taxes or at least set the money aside throughout the year so it’s not a big blow on your wallet come tax season.
My Favorite Independent Contract company that I personally work for is called VIP Kids! I teach kids English based on VIP Kid’s set curriculum. If you like teaching, you may want to try this out! Click here to get more information!
(I just started with this company, but will create an entire blog post dedicated to my experiences soon! But so far, I’m Loving it! The pay is great too!)
While each company requires different things from their Independent Contractors, MOST require:
A fast internet connection – if you’re working online (where most contractor jobs are performed).
A quiet work environment
Hours to dedicated – this is a JOB. Just because you may be working from home does not mean you get to slack off and expect to be paid!
Continued training – most likely unpaid
Pros of entering into an Independent Contractor Agreement:
You have more control over the hours you work
Most likely you’ll work from home
You can make good money
You can choose from many fields and use your talents accordingly
There might be costs upfront (background check, specific equipment, etc…)
***However, do not PAY to apply for a job – these are scams 99% of the time!
It might be hard to get started
It takes time to build up a steady stream of work
You’re on the hook for your own taxes
Check out my Work From Home Jobs Pageto view Legitimate work from home companies. Most are Independent Contract Positions, but not all of them.
What kind of job are you looking for? Leave me a message in the comment section below! Do you know of an independent contract company that you’d like to share? Tell me what it is!
Go find your new Dream Job!
Full Disclosure: Each State and country has their own rules for Independent Contractors! Please check your state’s guidelines often to make sure you’re in complete compliance.