What is an Independent Contractor?
In the simplest of terms, an independent contractor
is a worker (an individual or business) that provides services to a
company but is not an employee of that company. The working
relationship between the parties is governed by a contract, which
spells out the terms of the agreement.
Payment is made per unit of work performed as defined in the contract.
In the case of virtual call center work, payment may be made 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.
Payment for independent contractor services is reported to the IRS
(for United States tax reporting purposes) at the end of the tax year
on IRS Form 1099.
The decision to accept work as an independent contractor should be
made carefully with due consideration given to the resulting
responsibilities first.
Independent contractors are responsible for their own expenses and
taxes. Virtual call center expenses may include such items as phone
service, Internet service, and business insurance. Estimated tax
payments to the IRS may be required throughout the year.
Before deciding to accept work as an independent contractor you may
wish to consult with accounting, insurance, legal and/or tax
professionals to ensure a complete understanding of all the
implications of your decision, including record-keeping requirements.
Next, "How Much Do Virtual Center Jobs Pay?".
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