By definition, an Independent contractor is an individual that contracts without having an employee’s legal status to perform various services. A vast majority that is eligible as independent contractors or self-employed entities have their own business, trade, and careers; in other words, they have their own businesses. The norm was recently to graduate from the university, be employed, and stay employed until you retire. Examples of Independent contractors are tradespersons and experts like graphic artists, carpenters, doctors, plumbers, and accountants. Independent contracting is generally known to be popular in highly technical or specialized fields like accounting, computer programming, and engineering.
However, as today, with the world transitioning to the modern on-demand economy, the new normal is to be a graduate with certain skills set, secure a contract within your field of expertise and then switch from one contract to the other in various forms, thus acquiring valuable experience when working on these contacts. This new operation mode has made being an Independent Contracting a rewarding and nourishing experience, with numerous benefits compared to a full-time job. Some of the benefits of being an Independent Contractor include:
You end up becoming your own boss
Working as a contractor offers you greater flexibility, a more foreseeable work power, and excellent job security than the usual full-time jobs. You are, however, accountable for your own vacations, contracts, taxes, and benefits. Generally, Independent contractors are known to be captains of their financial destiny. The cash they earn correlates directly with their work quantity and quality. This isn’t essentially the workers’ case. Independent contractors don’t have to seek a raise from their employers. If they need more earnings, they only have to find out more work opportunities or even raise their charge amount. Since many independent contractors do not depend on one company for their living or income, the firing or hiring decisions of any single company don’t affect the independent contractors like the impact it has on employed workers.
Reduced income taxes
Being an independent contractor gives you numerous benefits that aren’t open to normal workers. For instance, they are no state taxes or federal taxes withdrawn from your paycheck. Rather, independent contractors have to directly pay the appraised taxes four times every year to the IRS. Besides, it will be your choice to choose the amount of tax you would wish to pay (though, there would be penalties if underpaid. This sort of flexibility grants you more independence and control over your hard-earned money.
You tend to maintain a great life and work balance.
Some independent contractors are capable of working remotely. Thus there is less commuting, and have to attend fewer conferences and meetings, while prompting less stress regarding traffic and office politics. Being an independent contractor implies that you are being paid on an hourly basis. If your skills happen to be on-demand by any chance, your rate of income can possibly be high.
You acquire experience
Shifting from one job to another after some months is an excellent idea as you’ll obtain excellent project experience. By working in these jobs, you will be cognizant of new tools and meet various individuals on several projects with diverse solutions and problems. This will help develop your CV and make you a highly skilled contractor for subsequent jobs.
On the off chance that these advantages sound alluring, and if it’s not a big deal to you to move around and acquire new work skills and experiences, you may not just have the secret sauce to turn into a self-employed entity. Still, you may also discover it to be an ideal approach to work.
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