More and more people are choosing to work for themselves. Data indicates that 1 in 5 people are currently working as independent contractors and over half the population would like to become self-employed. Working as an independent contractor can provide better working conditions, flexible hours and a higher income. Here are unique tips that can help you transition to an independent contracting position.
Contract work involves responsibility, drive, the ability to act on your own, commitment and initiative. As a self-employed person, you will be responsible for all estimated tax payments. If you find yourself struggling to grasp the concept, hiring a professional bookkeeper or tax accountant may help move the process along. Download our free guide below that details the simple steps involved in filing taxes as an independent contractor.
Record keeping is another important skill for independent contractors. Taxpayers must keep receipts, sales slips, invoices, bank deposit slips, canceled checks and other documents. These documents, either electronic or paper files, can substantiate items of income, deductions, and credits. Keeping these detailed records will help a taxpayer pay only the tax they owe. Using technology to stay organized, paperless, and aware of your personal trends is a great way to empower yourself to keep control of the hard-earned money you’ve earned.
Molly, a physical therapist at Luna, saw thorough record keeping as beneficial in several ways. “While it may seem odd, I found becoming a contractor to be very useful in other aspects of my life. It helped me organize where I really envisioned my life going. I took a good look at my finances and prioritized what was most important to me: buying a house sometime in the near future with my husband so we can start a family. Before, it was always just a vague plan. now we’ve taken the steps to make this a reality.”
Another central tenant to becoming self-employed is deducting business expenses. Considering you run your own separate business entity, you are entitled to some unique write-offs. Two of the most important business deductions to consider are business use of your home and business usage of your car. When appropriate, these can be used to properly ensure your business can thrive.
Contracting can be an amazing opportunity for people who value flexibility, independence, and a higher earning potential. Being self-employed can be liberating and empowering. Molly describes what it was like taking her first steps towards independent contracting. “I always wanted to put my toes in the water and test out what being self-employed was all about, but I was too apprehensive. At Luna, I’ve experienced true freedom when it comes to my working life, with none of the drawbacks of opening up my own practice. It’s truly a special experience that has enabled me to capitalize on my strengths.”
We wanted to make the working experience great again and with Luna, we’re FIERCE about allowing our contractors to thrive. Everyone should be able to be passionate about what he or she chooses to do for work and we’re continually striving to make that a reality for all of our physical therapists. Palak Shah, Head of Physical Therapy Services at Luna, details how independent contracting works for Luna therapists. “Luna allows work life balance without compromising professional goals,” she says. “One of our therapists works full time but also would like to pursue goals like offering his expertise to missions, while exploring and writing about physical therapy in different countries. He also wants to teach and mentor. With a traditional work environment, dreams end up staying dreams. Luna's platform can be an opportunity to provide the same quality care with the added benefits of being FIERCE. We would love to see the therapists with creative and futuristic outlook become successful. Being an independent contractor can help create a life on your terms and accomplish your dreams to allow a satisfying future.” Take your working life into your own hands! We’ll be there to help guide you through the whole process.
Want to know more about how to thrive as an Independent Contractor? Click the link below for our free, easy to use, step-by-step manual on everything you need to know about independent contracting.