What are the Drawbacks of Being an Independent Contractor?
- Job security.
People working for a boss generally have job security even if the employer’s business is running a bit slow. As a contractor, you are self-employed and if you don’t have any business, you will have little job security.
- No employer provided benefits.
Employers have to provide employees with certain benefits. A contractor has to look after himself/herself.
- You have to pay own tax.
Employees have to pay wages tax. They don’t have to worry about taxation because the employer looks after the deductions. All they receive is the net amount in their hand. Contractors have to comply with the tax system and take care of their taxes when due.
- Being paid.
If you are an employee, your employer has to worry about paying you. You don’t have to worry that your remuneration will not be there when it is due. As a contractor, you are responsi...
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