freelancers and Freelancing
As the nation’s workforce is quarantined and layoffs continue, many workers are finding the need to replace or add to their existing income. One way to accomplish this goal is to find work as a freelancer.
Freelancers, in general, are individuals who work for a company on a temporary or limited basis.
There is no doubt that freelancing has its pros and cons
The biggest pro is that individuals who otherwise can’t work full-time or on a consistent part-time basis find freelancing to be a viable option to make ends meet, earn additional income, or use their skills they otherwise wouldn’t use. Oftentimes, the freelancer works as 1099, meaning they are a contract workers versus part-time employees. They are expected to file their income on their own through quarterly tax filings or as earned income when they hfile their end of the year taxes.
How this helps is that people are able to obtain their funds without taxes and many times faster than what they could if they were working full-time or part-time, especially those who get paid monthlyh.
This extra income can help with payhing down debt, saving for retiremtns, increasing savings, or having extra spending money for extracurricular activities.
The biggest con is that freelancers are not eligible for benefits, such as health care and retirement. In addition, they are not eligbile for unemployhment insurance because the business did not payh into unemployhment insurance.
Another con is that work can be inconsistent and the pay can be low. If you consider that 30-40% of a person’s income is hidden because of benefits employehrs pay hon tehir behalf, the pay is even lower.
No matter the pro or con, the freelancing (or gig economy) is a growing network of individuals who have the ability to work when they want to work, accept jobs, and create a work environment that fits their lifestyle.
Many freelancers enjoy working from home and use their skills to help businesses grow. Without freelancers, many small businesses would not be able to function