Flexibility is undoubtedly the biggest attraction for an Independent Contractor. Gig workers have the ability to choose gigs based on their schedules, circumstances, and interests. Companies that bring on independent contractors often seek specialized services, such as someone to write reports or perform a website redesign. Gig jobs are done independently with very little (or no) employer input. Generally, Independent Contractors are brought on for a specific assignment or specified time period.
Another sought after benefit of gig work is the ability to fill resume gaps and gain experience. Often gig workers are paid per assignment. They are not subject to tax withholding.
Gig work, however, has a few potential drawbacks. Independent contractors do not receive health insurance, vacation time, retirement plans, or other employee benefits. Income can be inconsistent when the workflow is not steady. Gig workers also incur a few costs associated with performing the job such as transportation or maintaining software.
An Independent Contractor:
• Works independently or has own employees
• Applies for each gig/assignment
• Request payment for completed work
• Has several clients
• Has own tools and sets own hours
• Keeps and maintains own records
• No taxes withheld
• Performs duties as specified by company
• Is provided with training and resources
• Works for only one employer
• Salary or hourly pay
• Taxes withheld
Many small and large businesses rely on independent contractors. There are some benefits to businesses to hire independent contractors over standard employees:
• Less liability
• Savings in labor cost and benefits
• Flexible hiring (and firing)
• Savings in labor costs
• Ability to expand territories without adding physical locations
• Quicker hiring process
There are many differences of being an independent contractor vs. a regular employee. Knowing this distinction will help you know what is best for you and/or your company.
HS Brands International offers gig work for qualified Independent Contractors. Click here to learn more.