According to Hipple (2010), one out of nine workers in America was self-employed in 2009. Besides, Hipple (2010) notes that the construction industry happens to be one of the sectors where most workers prefer independent contracting. In the United States, male, white, native Americans are highly probable to engage in self-employment (Hipple, 2004). Thompson (2010) believes that home-based businesses currently operate between 18.3 million and 30 million. As a painter, I would prefer being an independent contractor rather than working for a house painting company. That mainly has to do with the flexibility that is associated with self-employment. However, research shows that there are more disadvantages than there are advantages of being an independent contractor.
Research shows that independent contractors work for more hours than paid employees (Engblom, 2003). Paid employees, unlike independent contractors, have office hours that they keep. Besides, in a company, work is divided among various people. There are also other benefits that an independent contractor does not enjoy. Laberstein and Ruckelshaus (2016) note that an independent contractor is not entitled to unemployment insurance, tax compensation, workers’ compensation, retirement benefits, collective bargain and the right to form a union, anti-harassment and discrimination, and minimum wage and overtime. Independent contractors are responsible for filing their quarterly taxes, unlike paid workers whose taxes are deducted from their payroll. They are also responsible for their insurance and their operating costs.
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The disadvantages of self-employment may seem more than the advantages, but the rate of self-employed individuals keeps rising. The flexibility that is associated with self-employment is one of the main factors that attract people. Being one's boss is an aspect that motivates many people. One can plan their schedule and work within their time frame.
References
Engblom, S. (2003). Self-employment and the personal scope of labor law: comparative lessonsfrom France, Italy, Sweden, the United Kingdom, and the United States.
Hipple, S. (2004). Self-employment in the United States: an update. Monthly Lab. Rev. , 127 , 13.
Hipple, S. F., & Hammond, L. A. (2010). Self-employment in the United States. Monthly Labor Review , 133 (9), 17-32.
Leberstein, S., & Ruckelshaus, C. (2016). Independent Contractor vs. Employee: Why independent contractor misclassification matters and what we can do to stop it.
Thompson, D. (2010). Self Employment Guide. Retrieved on 18 th Oct 2020 from www.2009-2017.state.gov
