Remote working means you are an employee who works full-time or part-time outside of an employer’s office for W-2 taxable wages or salary. If part-time, you could be an employee for more than one employer. You may be located near the employer’s physical office or as far away as the other side of the world. If located near the employer’s office, you may go into the physical office at times (sometimes called telecommuting).
Remote working is distinguished from working outside the office for one or more clients but as an independent contractor…as your own business. Being self-employed, each of your clients would issue you a 1099 tax form at the end of the year reporting taxable income, which you must then report for your business. Depending on your location vs. your clients’ locations, you may or may not ever go into your clients’ offices.
(Note: you can be an independent contractor in the legal/taxable form of a proprietorship, LLC or corporation (C or S). Refer to your legal and financial advisors for the pros and cons of each in your case.)
Remote working was already on the rise before the COVID-19 pandemic. A Virgin Media Business Survey predicted that by 2022, 60% of the workforce will have work-from-home jobs. And that was before COVID-19!
For a variety of reasons related to the pandemic, the number of remote workers has started exploding even faster. (for the reasons, see my blog post “41 Ways the Coronavirus Pandemic is a Watershed Moment That Argues for You Starting Your Own, Online ‘Liestyle” Digital Information Business”)
So whether or not you had and retained an existing job during the shutdown, you have a decision to make. Do you:
- Resume or assume another job as an on-site employee?
- Transition into being a remote worker?
- Create your own online business to work for one or more clients as an independent contractor?
- Create your own online business that is unrelated to performing work for “employers”.
- Doing some combination of the above.
Making a Living Your Way already has a ton of content related to creating your online own business.
In the coming days, you will also start seeing new resources on the site designed to help you become a happy and successful remote worker.
You will also receive email notices as they are put into place.