Your Ad Here
 

Employee vs. Independent Contractor Decisions

 

Small Business Ideas Forum

A friendly place to find help & encourage one another

When I made the decision to work part time from home for my current employer, I was torn between being an independent contractor and simply becoming a part-time employee. Even though it’s likely I won’t work enough hours to qualify for benefits, there are other important considerations:

  • By being an independent contractor, I can command a higher hourly rate. This is due to the fact that I will have to pay my own payroll taxes, which eat up about $.37 of each dollar I earn.
  • By being an employee, I preserve my ability to obtain credit. This is due to the fact that once an individual is fully self-employed, creditors will want to see two full years of self-employment before they are willing to lend to you. This is especially true when you want to buy a home.
  • By being an independent contractor, I can start asap on building up to those two years of self-employment history - and every second counts sometimes.
  • By being an employee, I lengthen the time I can participate in COBRA if I so desire.
  • By being an independent contractor, I will have to hire a bookeeper sooner than later, eating up precious early capital I would rather spend on copywriters or PPC advertising.

There was a time when I went with the independent contractor status when I launched Aminion Design, and my first client was my former employer. I wanted to establish the company asap. This time around, since there is some uncertainty about my financial future, I want to preserve my ability to get credit - so I chose to be a work at home part time employee. Thankfully, because I have been through this stuff, I could easily make the decision based on the other factors in my life.

Share the Love... and the Traffic ;) These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • Netscape
  • StumbleUpon
  • del.icio.us
  • BlinkList
  • Fark
  • Furl
  • Ma.gnolia
  • Reddit
  • Technorati
  • Bumpzee
  • Slashdot
  • TailRank
  • co.mments
  • NewsVine
  • YahooMyWeb
 

If you liked this article, please...

Subscribe Via Email Subscribe Via RSS Technorati Favorites

Or read these related articles...

  • No related posts

  • Tags: , , ,

    Discussion

    What do you think? Leave a comment. Alternatively, write a post on your own weblog; this blog accepts trackbacks [trackback url].
    This blog has removed the "nofollow" tags, so each comment counts as an inbound link to your site. Comment Policy

    Leave a Reply

    If you liked this article, take more To Go...

     

    Subscribe to Daily Posts Via Email
    Sign Up for the Weekly Email Newsletter
    I'll never sell or rent your info. Period.
     
    Subscribe Via an RSS Reader