Se Habla EspaƑol
805-845-0864
Call For A Consultation
Anticouni & Associates

Advantages and disadvantages of an independent contractor

If you live in California and are considering being an independent contractor (IC) it is important you understand what it means. While there are distinct benefits to this employment classification, there are also some downfalls. For some workers it is a great arrangement, while for others being an employee may be the better fit.

According to the Chronicle, one of the biggest advantages of an independent contractor is you get to call the shots. You choose which projects you take, what your hours are, how many vacations you take and where you work. There is also no income ceiling. You can work as much as you want and you are not confined to salary limits. There are also tax advantages, as you can deduct your business-related expenses and no taxes are taken out of your paycheck.

KALW Local Public Radio in San Francisco warns that tax implications can also be a disadvantage. The city, and others in the state, is now imposing a city tax on independent contractors, which is separate from the IRS. Because taxes are not taken out initially, an IC must also be financially responsible so there is enough to pay taxes owed come tax season. An IC also does not receive benefits such as health insurance, workers' compensation, vacation or sick pay, overtime pay, labor rights and unemployment benefits.

If you are considered to be an independent contractor, make sure you understand your rights. Some employers will classify you as an IC for their benefit but then treat you like an employee. If this is happening, make sure you reach out to an employment attorney. 

 

 

No Comments

Leave a comment
Comment Information
Email Us

Find The Help You Need

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

  • Martindale-Hubell | AV Preeminent | Peer Rated for Highest Level of Professional Excellence | 2018
  • California Employment Lawyers Association | CELA | Fighting for Employee Rights
  • The American Society of Legal Advocation | ASLA
  • Super Lawyers
  • NELA

201 N. Calle Cesar Chavez
Suite 105
Santa Barbara, CA 93103

Phone: 805-845-0864
Fax: 805-845-0965
Map & Directions