Contractor (what is it)

As our country evolves we are seeing a shift. This shift is employees are being hired less, and contractors are being hired more. So what is a contractor? A contractor is a person who has a contract with a company to do the work and get paid a fee for the work that is done. A contractor must provide their own liability insurance, vehicle insurance, work comp insurance, and sometimes the contract requires few other options. A contractor pays their own health insurance, and receives no vacation or sick leave. If a contractor does not go to work for the day he/she does not get paid. A contractor pays their own social security tax, Medicare tax, and is not able to draw unemployment. A contractor will also be charged a self employment tax by the IRS for so called being self employed. Now all this sounds like a lot, so why would anyone want to be a contractor instead of an employee. Well the employee who gets paid $15 an hour to do the same job I am doing as a contractor gets all those benefits and 40 hours a week to make a $35000 year salary if lucky. As a contractor you will get paid what is called piece pay. This means each time you do the work you get so much for the job. If you are slow you will not make good money. If you are fast and can repeat the job multiple times you make good money. The same $15 an hour job I make $125000 for the year. Yes I pay out all that stuff, but I also get to do tax write offs for milage driven, office supplies, ect, ect.. When it’s all said and done that same $15 an hour job is worth about $65-75000 for the year as a contractor. Now this is on the smaller end for someone with no education. You take someone who has college degree position and contract it out, and it might be worth 3 times the amount of a labor position. Hope this provides a little insight. Check back later for more on being a contractor.

If your interested here is a position that would fall under contract labor and pays nicely, and can be done from your home


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