Let me first tell you what you are not – you are not going to become an employee, but rather an independent contractor. What’s the difference you may ask: An employee works for someone else, has their taxes deducted along with social security, FICA deductions and pay to them is after all these deductions and the net pay is what is received. An independent contractor is paid the entire amount and is responsible for taxes paid to the government on an annualized basis. Working this way, you have the potential to earn more pay, and having your own business allows you to deduct business-related expenses whereby over the course of the year you can make more money than if you work as an employee. For example, all your travel expenses, car-payments/gas/insurance, cleaning equipment and supplies, laundry for your cleaning clothes and wash cloths are ALL tax-deductible so keep your receipts and be organized.

An increased number of companies are working this way since it is more beneficial for them and it’s more beneficial to each team member. It’s the smart way for people to work. The IRS sent out 90 million 1099’s for 2016, that’s how many people in the US work for themselves in mostly home-based businesses.

X
wpChatIcon