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.
If you liked this article, please... |
|||||
Subscribe Via Email | Subscribe Via RSS | Technorati Favorites |
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...