The Benefits of Working as an Independent Contractor Online

Confusing the distinction between an independent contractor or an employee is an easy mistake to make. Each work has its advantages and disadvantages, and your temperament may be better suited to one working style over another.


You may prefer to become an independent contractor and run your own company, or, you may end up as an independent contractor because your employer has changed your status as a full-time employee.

Whatever the reason, understanding the facets of self-employment should help you decide whether becoming an independent contractor makes the best sense for you and your family.


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What Is an Independent Contractor?

A self-employed contractor is an individual in business, providing goods or services to another individual or company. The independent contractor is a distinct entity and is not considered to be an employee. Independent contractors, such as consultants, agents, or brokers, may work in a variety of positions. Others may be creative professionals or IT / Tech types.

Most employees do not have a written contract of employment unless they work under a trade union contract or are highly paid executives. It is a good idea to get a written contract from every person or company you work for.


A contract determines the duration of the work, what happens if one party decides to opt out, and what happens if one party cannot perform their duties.

Self-Employment Opportunities

Hiring an independent contractor has many significant advantages including greater flexibility and the right to reduce expenditures.

Being Independent

One reason why you might be considering the move is that you don't have to work for someone else.

Depending on the type of job, you may be able to set your own hours and complete work assignments whenever you choose. You will be able to discuss pay scales and a payment schedule. If you operate at an hourly rate you will do have to complete a timesheet.

No Withholding Tax

Some people find it an advantage because no federal or state income tax or any FICA tax (Social Security and Medicare taxes) has been deducted from the compensation you receive as an independent contractor.

On your personal income tax return, though, you have to pay these taxes instead. As you won't have an employer to share FICA taxes with you, you will have to pay a tax on self-employment1.

Business Expenses Deduction

All expenses you have to pay to run your business as an independent contractor are deductible to you as business expenses. That includes business travel, as well as the costs of having a home company.

While you'll have to file a corporate tax return to take the deductions, minimizing your income and income tax liability is worth it.

What Does an Online Independent Contractor Do?

As an independent online contractor, your job is to provide your client with freelance support on a particular project.

You may provide customer service in this virtual role, help test software or other technologies, participate in marketing campaigns, copy and paste messages, perform data entry, provide product design feedback, or assist their IT department as defined in your agreement.

Apart from general programming skills, online independent contractors typically take jobs that require little to no preparation. While you may have been working for a single company for a long time, the majority of workers in this industry shift as work becomes available between various companies.

How to Become an Online Independent Contractor

The primary qualifications to become an online self-employed contractor are a high school diploma and reliable internet access. Other requirements depend on the job and can range from excellent telephone manners to leadership skills, attention to detail, or group discussion management capability.

Employers prefer applicants who have similar work experience, so many independent online contractors look for different roles to gain experience and qualify for as many positions as possible.

Where to Find Jobs

Try out these websites and job portals now!

  1. Zip Recruiter
  2. Indeed
  3. Jobble

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The fulfillment of an online independent contractor's duties and responsibilities requires communication skills, a computer, and the ability to adapt your schedule to the needs of the client.

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