What’s the difference between Telecommute, Contract and Freelance jobs?

With so many online job terms floating around these days, it’s hard to keep up with the different types and what they mean; therefore I would like to keep everyone in the know.

What’s the difference between Telecommute, Contract and Freelance jobs?

A “Telecommute” job is when you are working for a company from home, you are on that companies’ payroll, and you get a W-2 at the end of the year for tax filing purposes. This is the ideal online job for most people because you usually have set hours just like you would if you were to go into an office. The only difference between a regular job and a telecommute job is that you do the work from your own home office. Taxes are deducted from your pay and you will file a tax return at the end of the year by using the earnings and taxes paid as stated on your W-2 form that your employer will provide to you.

A “Contract” job is when you are working for yourself, ‘contracting yourself out’ to companies for the services you perform. This type of employment allows you to contract yourself out with as many different companies as you like (as long as you can handle the workload). Most of the times you and the company that needs your services will draw up a written contract for the work that you are to perform along with a price agreement. Many times this is just an oral contract; but oral contracts should only be entered with someone you know and trust that will pay you for your services.

You should never make an oral contract with a stranger unless you are paid something up front for the services you are to perform. Usually there is a set amount of money that you will charge for the job; however, some contract jobs are charged and paid by the hour. At the end of the year, you will get a 1099 from each company that you entered into contracts with and earned money from that year. You may get several 1099′s if you contracted yourself out to several different companies. Taxes are usually NOT deducted from your pay; therefore it is your responsibility to pay the taxes on that earned income at year end when you file your tax returns (for USA residents).

“Freelance” is a term used that means you are working from home – and refers to a type of job where the worker is self-employed. A freelance worker works for themselves and bids for temporary jobs and projects with one or more employers. Other terms used are independent contractor and consultant.

A freelance employee usually performs services or completes work assignments under short-term contracts with several employers, or clients, who have the right to control only the final result of the individual’s work, rather than the specific means used to get the work done. This type of employee is also responsible for paying their taxes at year-end, however some choose to pay quarterly. Just as a contract job, you should get a 1099 at the end of the year from each employer that you worked for during the year.

Our “Database of Online Jobs” has ALL of these types of online jobs included in it. There is a huge assortment of all of them. We have many high profile companies that hire telecommute employees, both full time and part time. We also have many jobs that you can do as a contract employee, and many freelance jobs.  Access your copy today from our home page!

Author: Susan Lambert