What is the definition of freelance work? If you’re new to the world of freelancing and being an independent contractor it is important to understand. Find details and resources here.
Unlike being an employee that works for one company, freelancer (technically called an independent contractor) runs their own business and typically works for a number of different clients doing project work that requires special expertise.
You might also hear independent contractors called consultants, self-employed, and even entrepreneurs or business owners. Here are some key things that make it different from working for an employer:
- Freelancers are their own boss.
- Freelancers are typically paid more (per hour) than their employed counterparts.
- Freelancers are not provided benefits, unemployment insurance or worker’ compensation.
- No federal or state tax is withheld from the pay of freelancers; this means you have to track and file taxes yourself, typically on a quarterly basis.
- Freelancers pay for their own expense and can apply those expenses as business deductions when they file taxes.
More information and key forms for freelancers can be found at www.IRS.gov.
Are you interested in becoming a freelancer? It’s easy to get started. Click on the “Freelance Work” button to the left or click here to find out more.