Taxes, retirement, and health insurance for contractors with work at home jobs
There are many benefits to those of us who have work at home jobs. Employers who hire people to work at home also have many benefits to hiring them as independent contractors versus regular employees. In addition to not having to provide workspace and office support to work at home employees, they are also not required to collect and pay their federal and state taxes, Medicare and other taxes, and pay for unemployment insurance and workmen's compensation. Work at home Independent contractors are also not usually paid benefits.
If you are considering taking a work at home job opportunity as a work at home independent contractor, you may find that there are many benefits to you, as well as to your employer. Some of these may include:
1. Being free and independent
2. Being able to determine how you perform your work at home job
3. Being able to deduct portions of some of your expenses from your taxes. This may include portions of your house payment or rent and other business-related expenses such as: cleaning, maintenance, mortgage interest, utility costs, phone use, office supplies, business-related mileage and much more.
4. Being able to work at home for more than one company at a time
There are also many other financial considerations if you're considering taking a work at home job as an independent contractor. How much money will you save on day care, commuting and other expenses now that you'll be able to work at home. How much will your health insurance cost now? How will this affect your retirement? Social security? 401(k)? Will you be paying less taxes now, or more?
One work at home employee, Sue P., had a high-paying outside job for years. She and her husband were both professionals and earned over $150,000 a year. Even though their employers both took out huge sums of money every month for their taxes, they still ended up writing a big, fat check for more taxes every April. When she quit her outside job and took a less-paying job at home, they stopped having to write checks for taxes and instead, starting receiving large tax refund checks every year.
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| Not intended to give financial, tax, legal or accounting advice. Please contact a competent professional to properly advise you on tax, accounting, legal and financial matters. |
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