what's the difference between these two?
2007-10-11 10:30:23 · 5 answers · asked by Blah Blah Blah 2 in Business & Finance ➔ Insurance
Self employed means you're the boss. Contract employed means they are the boss.
2007-10-11 11:39:36 · answer #1 · answered by Anonymous 7 · 0⤊ 0⤋
Legallly it depends on the terms of the job. If the person hiring you determines work rules like where, how and when you do the work, you are an employee.
If by "contract employed" you mean independent contractor, that's a type of being self-employed.
2007-10-11 12:02:24 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
There are pros and cons to both. The pro to contract salary- less paperwork, more reliable paycheck and taxes are taken out every paycheck cycle. And you will have a steady paycheck so you know in advance your income for investing, budgeting, and paying bills. The pro to self employed- you will pay less taxes, but all at one time. You can Itemize and deduct more expenses and perhaps even part of your home if it is used as an office. Cons to contract salary- Could be micro-managed by annoying bosses, paying more in taxes and your less likely to itemize. Cons to self employed- You have to set aside money to pay at the end of the year. You will pay more to have your taxes done by a professional becuase of the extra work involved with itemizing. And, saving receipts and paperwork is really a chore for many people, you have to save all related tax receipts for 7 yr minimum incase you are ever audited. You should keep them longer to CYA. Good luck.
2016-05-21 23:18:45 · answer #3 · answered by ? 3 · 0⤊ 0⤋
I just did a 1099 contract earlier this year - I have to do estimate taxes, for a start. Way more work with a 1099. I got paid far more. But I'd rather have done a W2 no benefits.
2007-10-11 10:36:29 · answer #4 · answered by dryheatdave 6 · 0⤊ 0⤋
One, you have a contract, the other, you don't.
That's pretty much it.
2007-10-11 10:39:56 · answer #5 · answered by Expert8675309 7 · 0⤊ 0⤋