Telecommute vs Freelancing
There is a common misnomer that a telecommuting position and a freelance position are the same thing. In most cases, this is simply not correct. Telecommuting is typically the ability to move your "office" to your home one ore more days a week. While it's true that many freelance contractors do occasionally go and work in an office, it is more the exception than the rule. Most freelancers work from their homes, more than seventy percent of the time.
There are some significant differences that are even more striking:
A) A telecommuter typically has a supervisor and a manager - The typical telecommuter will have a supervisor and a manager who monitor their work in one manner or another, help determine salary, raises and even annual bonuses. As a freelancer, you will monitor your own work (with the oversight of a client versus a boss).
B) Telecommuters are usually "regular" employees - As a telecommuter you may find you don't get some of the tax benefits (or drawbacks) of a freelancer. While a freelancer is responsible for paying their own taxes (for those in US that means they are paid and receive a 1099 form or other documents), most telecommuters are W-2 employees and a firm pays their taxes, Social Security and benefits. Telecommuters will not receive many of the benefits of home-office deductions that are available to freelanceers.
C) Equipment needs/requirements/responsibilities - For most telecommuters if you need specialized software, computers, printers or other office equipment the employer will ensure that you are equipped with them. In fact, some companies pay for internet connections, and other required communications connections. A freelancer is always responsible for ensuring that they have the software, computers and necessary communications connections.
D) Expenses - For freelancers if they need business cards, stationary, postage or other office supplies, they are on their own. Those who enjoy a good telecommuting position will be able to have their employer purchase most of these items using their accounts and they may be shipped to the home of the telecommuter or they may be picked up in the office. These small items can add up to hundreds of dollars a year when you factor in the cost of ink and paper alone.
E) Tenure - For a telecommuter, you are an employee at will and as with any other company you may be laid off or have other career changing moves made in your position. Typical telecommuters have the same job security as their "in house" peers. However, a freelancer is almost always on the lookout for the next assignment. Assignments for a freelancer can be as brief as one day, though most do tend to last longer. Freelancers are not guaranteed a paycheck and most freelancers are not eligible for unemployment benefits between assignments.
If you are seeking opportunities where you can work from home, before you accept any work at home position make sure your role is clearly defined. There are significant tax implications for you whether you telecommute or are a freelancer. The differences between telecommuting and freelancing jobs is significant and it's important that you understand the difference between the two.
