Transitioning from Employee to Remote Contractor? What you need to know
Congratulations on receiving that remote job offer! While it's undoubtedly an exciting time, it's normal to have questions and uncertainties. We're here to shed light on what you need to know as you embark on this empowering journey into remote work.
The benefits of going remote
• Freedom and Flexibility: With remote work, you have the freedom to create your ideal work environment and set your own schedule. Work when and where you're most productive.
• Time Management: Say goodbye to unproductive hours at the office. Remote work allows you to manage your time efficiently, focusing on what truly matters.
• Currency Considerations: If you're working with a company like Ontop, you might have the option to receive your compensation in USD. Be sure to inquire about this during your onboarding process.
The important distinctions to consider
One crucial aspect to clarify is whether your remote position will be as an employee of record or under a contractor agreement, both come with their own set of differences and benefits.
• Taxes: As an employee, your employer typically withholds taxes on your behalf. However, as a contractor, you're responsible for managing your taxes independently. Consult a tax advisor to understand the implications, especially considering your tax residency fully.
• Social Security & Retirement Plans: Employees often enjoy benefits like Social Security and 401(k) contributions, which are provided by their employer. As a contractor, you must arrange and fund these benefits yourself. Research and secure retirement plans that align with your financial goals.
As you embark on this exciting journey, embrace the newfound autonomy remote contracting offers while staying vigilant about the administrative responsibilities it entails. With the right knowledge and preparation, you can make the most of remote work.