Freelancing is on the rise and this is for good reason. There are many perks to working as a freelancer and these days there are all kinds of roles that can be carried out in this capacity. Freelance work can give someone greater control and flexibility over their work and provide a healthy work-life balance. It is important that every freelancer is aware of the key rules and regulations for this type of work so that you can avoid any messy legal issues and carry out your work with confidence each day. Keep reading to find out more about the rules and regulations you should be aware of.
First, you should be making sure that you are entering legal agreements when taking on work with a client. Creating a contract provides the opportunity for protection for both parties while outlining what is expected of you during the agreement. Keep in mind that you do not have many rights as a freelance worker, so contracts can be useful for offering some protection and peace of mind. A contract with a client should contain key information such as:
- Scope of services
- Payment terms
- Termination rights
- Ownership of intellectual property
- Confidentiality obligations
Know Your Rights
Before working with a client, you always take your time and know what your rights are. If you are a truck driver, for example, then you can find hundreds of jobs for truck loads, but you always need to read the small print, know what is expected of you and what your rights are before accepting a job.
As companies do not pay payroll taxes for self-employed workers, you must make sure that you are paying your own tax every year to the IRS. You should set this money aside each month (around 30%) so that you know exactly how much money is your own and so that it is easy to pay your taxes each year. This means that you also need to maintain completely accurate books at all times, which you can do either by using accounting software or outsourcing this work to an accountant.
As a freelance worker, you also need to arrange insurance to protect yourself and your business. Many freelance workers would struggle to manage financially in a legal or another type of issue which may arise, so insurance is important for financial protection and peace of mind. The type of coverage that you need will depend on your work, but you will also need to pay for your own health insurance as this will not be sponsored by those providing you with work.
These are just a few of the main rules and regulations that you need to be aware of as a freelance worker. There are many perks to freelance work, but you also need to have a strong understanding of your rights and what you need to be doing to operate above board and avoid any messy legal issues.