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Independent contractors

Posted by in Roofer | Comments

Small companies and solo operators working independently as freelancers and contractors is a growing trend. A contractor is a person or business that takes on projects of relatively short duration. They aren’t permanent employees, but work on a contract basis for clients who need their services and their expertise. Those who prefer to work on their own terms see this type of self- employment as freedom from company policies and bosses. Independent work gives them more say about the type of work they do and how they do it.

Hiring a consultant or contractor is a win-win for business. Sometimes a company needs particular expertise on a short-term project that is outside the company’s primary focus. Hiring experts full-time is not an attractive option as they become useless after the project is over. A consulting expert contracted for the project is a more feasible option for the company.

Independent contractors encounter unique advantages and disadvantages. Since they are not employees, they can negotiate terms and conditions which are different for company’s permanent employees. They can accept work from multiple clients at one time, which provides extra stability.

They can work part-time and pursue their other interests alongside. There is a sense of being one’s own boss and not ruled or supervised, which excites many people. They can choose the kind of work they do rather than being told what to do. They are generally paid on the basis of actual hours and hence mostly works for fixed hours.

Disadvantages are that in some countries, there are different tax rules for permanent employees and contractors. They may not enjoy various services and non-monetary benefits like medical insurance, pensions and other compensations. There is always some uncertainty as they mostly work on short assignments and have to keep looking for new ones.

Often operating as a sole proprietorship or single-member limited liability company, solo contractors incur some extra taxes and have to track their own business taxes and income. Potential legal implications of breach of contract can result in permanent disqualification. Buying their own equipment gets very expensive, too.

Horrice Grunt is a widely respected writer who has been writing for 5 over years often writes on London Refurbishments and a wide range of other subjects.