As a contractor consultant, we have been able to enjoy the luxury of performing tasks for a variety of clients throughout the day, everyday. Just recently a client asked if I would be able to commit specific hours to them on a daily basis. Recognizing that this would void the “contractor” status, our client acknowledged they would have to look into an employment agency through which I would be paid. The whole discussion got me thinking about the differences of contractor vs. employee.
I can’t deny that I’ve enjoyed being my own boss. I know what tasks me team and I need to get done, and I set my own hours. I don’t get in trouble or receive the evil eye when my lunch hour expands beyond an hour, and I can listen to my own music or selection of webinars while working.
And as silly as it may sound, I can work as late or as early as I want to! (Have you every had an employer who DIDN’T want you working more than 15 minutes on either side of your start/stop time, even if you had a major project looming? I have!)
That’s not to say there’s nothing I missing about working (outside my home) for others. I miss the regular paycheck… sort of (I make more now); I miss the birthday carry-ins and sales rep lunch-and-learns; I miss paid vacations; And most of all I miss group health insurance.
While the offer my client is proposing doesn’t include any of these employment-by-other perks, I’m not ready to say it’s a losing contender in the contractor vs. employee battle.
If you are wondering about the pros and cons of being a contractor vs. employee, here are a few questions to consider:
• Would it be worth paying taxes now to avoid paying estimated self-employment taxes throughout the year?
• By committing to one client are you eliminating the possibility of multiple, higher-paying clients?
• What are the perks associated with becoming an employee, if any?
• Will there be flexibility in terms of vacations and/or doctors appointments?
• What will happen to the rest of your clients if you suddenly become unavailable for some, if not all, of your day?
• Who will pay for equipment if you are an employee? What if your computer dies when you are working for your client? Is your client going to pay to fix it?
If you find yourself in the situation where you are weighing your options in the contractor vs. employee debate, consider the pros and cons involved in your own situation.
Kim Sutton is the Managing Partner and Chief Everything Officer of The Sutton Companies, including Sutton Strategic Solutions and Sutton Creative Studios. She is a graduate of The School of the Art Institute of Chicago where she earned her Bachelor’s Degree in Interior Architecture.
An avid reader and passionate learner, Kim is constantly researching, studying and developing business improvement strategies. When it comes to client work, Kim especially enjoys helping her clients develop innovative marketing strategies and sales funnels, particularly when they are using Infusionsoft to automate all the heavy lifting. To find out how you can further develop your company’s marketing and automation strategies schedule a 1-hour Business Boost Strategy Session by clicking here.
In her free-time, Kim cherishes the time she gets to spend with her husband, Dave (her business partner), and five children. She also enjoys reading, knitting, writing and playing video games.
Get a copy of Kim’s FREE guide, “10 Top Tools for Small Businesses” by clicking here.