While checking out the latest work-at-home job ads, you may run across the terms "telecommuting" and "independent contractor." Each status comes with their own distinctions and it is important to know the differences between the two.
When a company advertises a telecommuting position, it normally means:
- you would actually be an employee of the company and would usually have company benefits.
- some telecommuting positions require the employee to come into a physical office for a period of time (maybe once a week, several days a week, etc.) to perform office tasks.
- as a telecommuter, employees receive a tax statement (W-2) at the end of the year, outlining wages earned and taxes deducted.
-some companies provide office equipment for employees' home office use.
As an independent contractor:
- you are independent in every sense of the word, meaning you are not an employee, there are no benefits, and you would be responsible for your own taxes at the end of the year.
- you control how and when the project is completed, as long as the client is satisfied with the finished product.
- it is necessary to have a contract in place, outlining the responsibilities and expectations, wages, how often you request payment, and any other terms.
- you purchase and maintain your office equipment and supplies.
Deciding from the onset which status fits your job search needs will weed out the irrelevant work-at-home positions and hopefully have you on your way to a successful working arrangement.
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