is an Independent Contractor?
Many job listings and job opportunities
list independent contractor, what does this term mean exactly?
are people whom are in business for them selves; they earn their livelihoods
from their own independent businesses instead of depending upon an employer
to earn a living."
What exactly does this mean
for you when applying for a position that says you will be your own Independent
Contractor? In simplest of terms, it means you are responsible for your
own taxes. You will be paid a set amount and the employer will not be
taking out any state or federal taxes from your check. Most independent
contractors pay estimated taxes directly to the IRS quarterly.
One of the benefits of being
an independent contractor is you can also claim your business expenses
should you have any. Such as your Internet service provider, 2nd phone
Two downfalls to being an independent
contractor are you will have no job security and you are now responsible
to pay self-employment taxes. Unlike employees who have half of their
Social Security and Medicare taxes paid by their employers, self-employed
people must pay their own Social Security and Medicare taxes.