by Doreen Martel

Created on: August 03, 2010

Freelancing and telecommuting are not the same types of employment.  Freelancers are self employed contractors who do work for hire for one or more companies. Telecommuting opportunities are offered by employers to their employees. There are other differences that define telecommuting and freelance employment. These include:

Tax treatment - as a telecommuter, you are most likely paid via W2 earnings with taxes, insurance and other standard deductions removed from your paycheck prior to you receiving it.  If you are laid off from a telecommuting position, you are eligible to collect unemployment compensation provided you meet the basic requirements. Freelancing professionals are typically paid via a 1099 form and are responsible for self employment tax, their own health insurance and are not offered any type of unemployment insurance.

Equipment and supplies - As a telecommuter, your employer will be responsible for the purchasing and upkeep of your equipment. While you may be asked to initially purchase the equipment, if you are telecommuting you will be reimbursed.  It is also standard practice for items like toner, paper and other office supplies that might be needed in the course of your telecommuting to be paid by your employer.  Freelance professionals are responsible for all costs associated with purchasing and maintaining their equipment as well as supplies they may need in the course of running their business.

Internet and telephone expenses - Some employers who have telecommuting staffs have arrangements with local cable operators and are able to offer their telecommuters internet and telephone access at no cost to the telecommuter. Much of this depends on the telecommuters role.  Freelance professionals not only have to pay their own internet access fees but may also be required to maintain a separate line for business use in order to qualify for tax deductions.

Software needs - If you are required to have special software in order for you to successfully execute your job as a telecommuter, your employer will provide that software either through a secure server or through other methods. Freelancing professionals must own the proper tools that they need to succeed in their jobs.

Summary

These are a few of the ways that one would go about defining freelance and telecommuting employment. The bottom line remains however that telecommuters are employed by a company while freelancers are self employed.  If you are considering a telecommuting position, you will be able to be comfortable that you will continue to be paid for your work based on the pay schedule your employer has in place.  If you are considering a freelance career, understand that your pay is guaranteed only by the effort that you put forth to put new contracts in place and continuing to grow your business.

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