YOUR RIGHTS AS AN INDEPEDENT CONTRACTOR

Probably the main reason you became an independent contractor (aka consultant, freelance and IC) or want to, is to be your own boss. Unfortunately, some U.S. companies don't fully understand the difference between independent contractors and employees. Even among companies that do understand the difference, there are those that attempt to exploit the relationship, because it's clearly to their advantage to do so.

Companies don't have to withhold federal, state and Social Security (FICA) taxes, or pay unemployment or workers' compensation insurance for independent contractors. They also don't need to offer benefits like paid sick leave, vacation, health insurance and stock options, as they do to attract and retain employees. In fact, companies don't have to offer much of anything to independent contractors, except that for which they've agreed by contract (independent contractor agreement). That saves tons of paperwork and big bucks, giving dishonest companies lots of incentive to cheat independent contractors of their rights. The cheaters (and naive) misclassify workers as independent contractors, but still attempt to control them as employees. In doing so, they reap the benefits of both worlds, while depriving independent contractors of the very reason they became independent contractors in the first place: to be their own bosses.Many misclassified independent contractors don't fully understand the difference either, which helps to perpetuate the problem. Here's how it's supposed to work when you are correctly classified as an independent contractor:

Companies are not your employers per se, but your clients. As such, they are not entitled to direct you in your work. Of course, your clients have a right to say what they expect for the rates they're paying you, but only as it relates to the outcome of the project. It's your right to decide when, where and how to get the project done. Natch, it's wise for you to satisfy your clients at the project level, if you wish to get paid and receive favorable referrals for landing more contract jobs. But that doesn't mean you must allow a client to control you as an employee. That's against the law. In other words, by U.S. law, an employer cannot classify you as an independent contractor, then dictate when, where and how you work, as though you are an employee. It's all about degree of control and independence.

Several U.S. government agencies have good reason to be interested in whether or not workers are correctly classified, including the Department of Labor, Social Security Administration, Workers' Compensation Offices, and Internal Revenue Service (IRS). Because companies don't withhold taxes for independent contractors, independent contractors are supposed to pay their own taxes quarterly. But many don't, intentionally or naively. That makes the rest of us pay more to the government agencies "robbed" of funds.

When companies misclassify employees as independent contractors, they are not paying into FICA, disability, unemployment and other useful government programs. This ultimately cheats all workers of their rightful benefits. It's the government's job to protect workers from exploitation. Misclassification cheats independent contractors of their rights as self-employed individuals. It might also cause them undue stress, because they feel pressured to put up with it just to keep working.

Under US law, you are either an employee or an independent contractor. It's one or the other. There is no in between. The IRS has taken the lead in helping employers correctly classify their workers, by developing the "Common-Law Rules".

More here: http://jobsearchtech.about.com/od/laborlaws/l/aa121800.htm

Independent Contractor

Independent Contractors are individuals (in the work at home field) who are employed by a company but are being contracted for a job. For many companies your job will be flexible. You of course have the benefit of being able to work from home, but make no mistake that you are still tied to the company that has "contracted" your services. The downside is that you normally don't receive any medical benefits from these companies because "technically" your not an employee of theirs. You are being paid to do a service. Also in the subject of taxes. They don't do for you. Normally when becoming and independent contractor you handle your own taxes and they don't take out any. My suggestions is to either get a good accountant because you will be responsible for your own taxes. The goodside is that you can itemize everything that you use to perform your work for the company. You are responsible for all of the items that you will use for the job. Ex: Computer, Fax machines, Copier, Telephone bill etc, but like I said don't stress. You can get all this back via taxes. Always remember to save your receipts! Now thankfully many work at home jobs don't require you to have experience. They are willing to train you. Some have paid training. Some do not, but most of these are online training or done by conference calls. If your the type of person who thinks your not the type who can earn a degree online then working at home won't be for you. Most of the time you have to learn about the job online and without a hands on approach. Most if not all training for work at home jobs are done online. If there's a company locally hiring in your area some may require that you attend training at their facility and then began to work from home. Also what I have learned through many jobs is that if you are going to be doing this you have to find a QUIET work space to do your job. I have known people to get fired because of the noise in the background while they are on the phone with a client doing there job. So mom's out there if ya kids a screamer put them in the basement. Just kidding! All in all there are upsides and downsides to being an indepdent contractor. If you desire to work from home weigh the pros and con's and see what suits you.

INDEPENDENT BUSINESS OWNERS

I already know what your saying. What in hell's the difference? Well there are major differences between the two. Asking which one you would like to become is the first step
to you choosing a career path. First lets get down to the definitions.

Independent Business Owner- You are still an independent Contractor for a company. The difference is you have more freedom and can claim the company as your own. You are still independent from the company, but you are using there services to make a success of "your business". Normally your role is that of a CEO. Your managing your own finances. You may have local support that your company provides for you and YOUR clients. You don't have a quota. Success is based on YOUR performance. Now mind you you are not a business owner in the likely since. For instance you can be makin bank with a company you are with, but if that company goes under with no negative influence on your part you will lose your "business". If that makes sense. Normally you have your OWN hours and can work whenever you want. Since it will be your "business" that you will be promoting. Your the ultimate boss as an independent business owner.

Now normally if you are going to become a business owner. An investment will have to be required. Unfortunatly there are many scams out there who want people to fork over there money only to jip them later in the end. So many people may overlook legit opportunities to work from home. As an independent business owner as I said it will be YOUR business in a sense. So if I wanted to open up a local toy store I would have to make an investment in my future company correct? The same thing applies if you want to work from home as an independent business owner. The money normally goes to the services that the company provides you for instance (your own websites where you can advertise your "business", training, customer service reps, your back office where you manage your clients etc). So your investment is going towards your business. Also whatever you have to shell out to get the position you can always write it off on your taxes!

A company that I recommend to become an independent business owner is Ameriplan. Wonderful thing about them is if you sign on with them you get medical benefits for your entire family. Click on the ameriplan link on the right hand side under INDEPENDENT BUSINESS OWNER LINK to learn more about Ameriplan.

THE BASICS OF WORKING FROM HOME (PART 1)

Picture. You. Sitting in your home.2008. Your either frustrated about having to go to a job you despise. A child is crying in the background yearning for your comfort. You want to be there for your child, but ya gotta pay the bills. Your a loner. The thought of actually having to be around people for more then an hour makes your skin crawl. At the same time you all decide you want to work from home. Great! Now where to begin? What will I need? Where do I look? Well before you start searching all over the place like a chicken with no head. Lemme give you some basics of what you will probably need to work from home. You can get your pen and paper. I can wait.

1. A computer. Duh
2. DSL or Cable Connection (High Speed, Lots of memory)
3.Landline Phone(Completely seperate from your personal home phone, NO CELL PHONES)
4.Virus Protection for computer (Norton, Mcafee etc)
5.Softwares installed on your computer (Microsoft Word, Excel,Powerpoint etc)
6.Headset
7.Unlimited Long distance on your phone (some companies require it some do not)
8.Current year computer models (ex: Windows XP, Windows Vista etc)
9. Adobe Reader

NOTE: For Windows Vista owners like myself. I have discovered that many companies do not support there work at home softwares for their business on Vista models. SOME not ALL.Many of them are trying to incorporate vista onto their site, but it is a work in progress. So god's speed to ya if you have a vista.

Those are the main things I have learned when I began searching for work at home jobs that was essential to me being employed. In some cases if you apply for a work at home position, they will test your computer for some of these features. If ya don't have it you will be outta luck. Now if you have all these things then you have the main essentials for you to be able to start working from home!