Should I Become an Independent Contractor?

First published in 2019; updated November 2026.

The real question behind "should I be an independent contractor or an employee?" is this: "Do I want to work for myself, or for someone else?" There is no general answer. The decision depends on what you want, and it should fit your own life.

Contract work is more available and more varied than it has ever been. While there isn't a single answer for whether it is right for you, the differences between an independent contractor and an employee fall into a few clear groups, and the one that matters most to you may point the way.

Tax

An employer withholds federal, state and FICA taxes from each paycheck. A client withholds nothing from an independent contractor: you pay your own income tax and self-employment tax, usually through quarterly estimated payments.

In return, you can deduct the ordinary and necessary costs of your business, such as business travel, a home office used only for work, tools and equipment, training that keeps your skills current, and business mileage. Self-employed people can often deduct their health insurance premiums too. The rules have limits, so talk to a tax professional about your own case: this is not tax advice.

Business

Independent contractors are not bound to hours set by a boss; employees work the hours their job sets, whether or not they fit the rest of their life.

A salaried, exempt employee's pay is capped by the salary, with no overtime. An independent contractor chooses which contracts to take and how many, so what they earn is not capped by a salary.

Who owns the work you create depends on your agreement. An employee's work usually belongs to the employer, and many client contracts assign a contractor's work to the client as well, so read that clause before you sign.

Employees can be hired for a role that drifts away from what they want to do, passed over for a promotion, or moved between departments. Independent contractors steer their own path: they choose the work that keeps them in the field they want, and they stay out of the office politics and sudden leadership changes that can derail a career.

Personal

An independent contractor's time and career are their own. Employees depend on promotions decided by other people, and on fitting an office culture they did not choose. Independent contractors, while professional and courteous, can skip the politics that drain time and energy, and they see the results of their work quickly.

Finding the work

The classic downsides of contract work were finding work and selling yourself. Online marketplaces make that easier. On Automate America, customers post contracts with the rate, the place and the schedule up front, and you apply with the profile you already have, showing your finished contracts, ratings, reviews and endorsements.

The biggest perk is freedom

Everyone has worked for a boss who didn't fit. Not answering to someone else for every small decision can matter a great deal to your wellbeing.

So the follow-up question to "Do I want to work for myself, or someone else?" is: do you want to build your own brand and run your own business? If so, independent contracting may be for you. Create your profile free at automateamerica.com and apply to the contracts that fit.