What are the pros and cons of being an independent contractor?
• You do not have to file income tax withholding. But, you would probably need to file quarterly estimated tax payments to avoid penalties for underpaying estimated tax. • You are free to do the work any way you choose as long as you fulfill the contract. • You have the right to hire or contract with someone else to perform the service. • You may be eligible for certain business tax deductions, including medical expenses. Cons include: • You are personally liable and responsible for all tax debts, including self-employment and Social Security taxes. • You must provide the equipment, supplies, licenses, and any other materials needed to complete your work. • You may be civilly responsible for any damage you cause in performing the service. • You are not covered by unemployment insurance, workers’ compensation benefits, or protected by Oregon’s Wage Security laws. • If you are not paid, you will need to seek legal remedies. • You may be sued for breach of contract if you don’t perform th
