Differences between work at home contractors and employees.
There are basic, general differences between most work at home opportunities that fall into two categories: work at home contractors and work at home employees.
Work at home Independent Contractors:
- Usually must agree to an Independent Contractors Agreement with their employer
- Usually don't get paid by the hour
- Usually don't receive benefits
- Usually aren't eligible for workmans comp and/or unemployment insurance
- Usually are responsible for collecting and paying their own taxes
- Usually can take advantage of special tax advantages and deductions
- Usually use their work at home office, equipment, supplies and other materials to perform their work at home job
- Are usually much more free and independent, less supervised and less controlled.
- Are usually responsible only for delivering a final result, not accountable for methods used to perform work at home duties
- Get a 1099 at the end of the year instead of a W2
- Can work at home for more than one company at a time
- Can usually hire other people to help with their work at home responsibilities if they wish
Work at home Independent Employees:
- May or may not have a contract with their employer
- May get paid based on time spent, not on productivity
- Usually receive full benefits and are eligible for workmans comp, retirement programs and unemployment
- Employer usually collects and pays taxes for employee
- Usually can not take advantage of tax benefits
- May or may not use their own office and supplies to do the work at home job
- May be far more controlled than independent contractors, even though they work at home
- May receive alot more input on how to do the work at home job
- Receive a W2 at the end of the year
- Is probably not able to hire other people or work for more than one company at at time.
Specific questions concerning specific work at home job opportunities should be addressed to the specific employers. The Internal Revenue Service also publishes helpful information about being an independent contractor.
Click here for work at home financial planning info.
Click here for more work at home contractor/employee info
Click here for list of basic differences between work at home contractors and employees.
Other websites that offer helpful information:
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