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Employee or Independent Contractor?

There are two ways you can be employed as a virtual call center agent, as an employee or as an independent contractor.

As an employee you receive either a salary or hourly pay. Your employer withholds taxes, and you may be eligible for incentive pay, bonuses and benefits, including such things as paid vacations, life insurance, and medical insurance for you and your family.

Independent contractors on the other hand are not employees of the virtual call center they work for. They are contractors and business owners. As a contractor you may be paid by the minute, by the hour, by the call, or for a successful call result, such as an appointment being set or a sale being made. Taxes will not be withheld and you will not receive benefits such as paid vacations and medical insurance, but may still be eligible for incentive pay and bonuses. The exact terms are dictated by your contract with the virtual call center operator.

The decision to accept employment as an independent contractor is one that should not be taken lightly. There is nothing wrong with it and it can be very rewarding. But sometimes, in their eagerness to get started right away, people may rush in without fully understanding all of the implications of their decision. This can lead to unpleasant surprises later. You should be sure you fully understand the resulting responsibilities prior to accepting employment as an independent contractor.

We look more closely at this topic next in, "What is an Independent Contractor?".

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