I am actually self-employed. For the difference between this and telecommuting see this post. This means that I am not on a payroll, nor do I know in advance the date I will actually get paid.
I have no:
• Direct deposit
• Vacation accrual
• Automatically deducted taxes
• Employer matched 401(K) contribution
I send invoices and for the most part, I get paid within a couple weeks. But it is critical to track invoices and follow up. Recently I called a client after four weeks to inquire about the status and he insisted he had mailed payment. A week later I followed up again and he admitted the invoice had gotten stashed under a pile of papers. A week after that phone call I finally received payment. While this can be a detriment to being self-employed it is more just something to consider by those taking on 1099-contractor positions. I, as the self-employed individual, have to be my own payroll, accounting, human resources and IT departments. Just a little something to think about.
Filed under: defintions, office tips, productivity, self-employed, telecommuting facts | Tagged: 1099-contractor, payroll, self-employed, telecommuter, telecommuting
