Working as an Independent Contractor- What You Need to Know
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If you are being paid for your services as an independent contractor, there are a few things you should know.
First, though there are no taxes deducted from your paycheck, your pay is still taxable income. You also will likely be responsible at the end of the year for the self-employment tax- that portion of your social security taxes that is usually paid by the employer if you were a W2 employee. Second, there are some things you cannot access as an independent contractor, like unemployment benefits. You can, however, opt into the Massachusetts Paid Family Leave program by making your own contributions to the program. If you do this, you will at least have access to benefits if you need to stop working due to a serious medical condition of yours or an immediate family member. Finally, if you have doubts about whether your classification as an independent contractor is legal, know that the legal risk for this decision likes with your employer, not with you. You should also know that if you raise a concern about your classification and are terminated as a result, this could be unlawful retaliation under Massachusetts law. Learn more here about the Massachusetts Independent Contractor Law. |
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