Welcome to Our School Psychologists Contracting FAQ Page!
We understand that navigating the world of contracting as a school psychologist can be both exciting and challenging. To make your journey smoother and ensure you have all the information you need, we've compiled a comprehensive list of commonly asked questions right here on this FAQ page. Whether you're a seasoned contracting expert or considering this career path for the first time, we're here to provide clarity and guidance. Explore the questions below to gain insights, and if you don't find the answer you're seeking, don't hesitate to reach out to us directly.
Commonly Asked Questions Unveiled!
Question: What is the difference between an employee and an independent contractor?
Answer: Employees work under the direct control and supervision of the employer, while independent contractors have more autonomy and control over their work.
Question: What insurance do I need as an independent contractor?
Answer: Liability insurance and professional liability insurance (errors and omissions insurance) are common types of insurance that independent contractors may consider to protect themselves from potential legal claims.
Question: How do I manage my finances as an independent contractor?
Answer: Keeping accurate records, setting aside money for taxes, and creating a budget are vital for managing finances effectively as an independent contractor.
Question: How do taxes work as an independent contractor?
Answer: As an independent contractor, you are responsible for paying both income taxes and self-employment taxes. A good rule of thumb is to save 30% from every check you receive. You may need to make estimated tax payments throughout the year.
Question: What expenses can I deduct as an independent contractor?
Answer: Independent contractors can typically deduct business-related expenses, such as testing materials, office supplies, equipment, travel expenses, and home office costs. However, it's essential to consult with a tax professional for specific guidance. Reimbursable expenses offset your tax liability.
Question: What are the advantages of being an independent contractor?
Answer: Benefits of being an independent contractor include greater flexibility, potential for higher income, control over your work schedule, and the ability to choose the projects you want to work on.
Question: Are there any downsides to being an independent contractor?
Answer: Independent contractors may experience irregular income, lack of employee benefits, and the need to handle administrative tasks that an employer typically manages for employees.
Question: Do I need to set up a business entity to work as an independent contractor?
Answer: It is not required but recommended to reduce your personal financial responsibility. Some independent contractors operate as sole proprietors, while others may choose to form a Limited Liability Company (LLC) or another business entity.