Freelancing is hard. In addition to finding work, chasing down invoices, and managing sudden changes in income, freelancing typically comes without automatic access to the benefits that full-time employees receive.<\/p>\n
Let’s take a look at the benefits freelancers have to make up for with their own time, money, and resourcefulness, and go over our options.<\/p>\n
Disclaimer: I do not advise or endorse any of these options. I am not qualified to give health, financial, or legal advice. I also don\u2019t endorse any of the organizations mentioned by name. They are just examples. This is just a simple informational layout to get you started.<\/em><\/p>\n Because the United States is one of the only wealthy nations without single-payer healthcare, most Americans rely on their employers for health insurance. In fact, in a study of the healthcare systems of the 11 wealthiest nations, the United States came in dead last<\/a>\u2026 by a lot. A big reason for this is a lack of equitable access and the fact that navigating the wild world of insurance policies can feel like wading through a Boschian hellscape<\/a>.<\/p>\n Having a solid insurance provider can mean the difference between saving for retirement and bankruptcy, if not life and death. So what\u2019s a freelancer to do?<\/p>\n The absolute easiest way to have health insurance is to have a spouse or domestic partner with a workplace plan. Doesn\u2019t scream \u201cindependence,\u201d but if you\u2019re in a stable relationship and it works for you, it makes life a lot easier.<\/p>\n If you\u2019re 26 or under, you can also remain on your parents\u2019 insurance under the Affordable Care Act. Again, not for everyone, especially if you can\u2019t rely on your parents, but another easier option if it\u2019s available to you.<\/p>\n You can also qualify for Medicaid if you meet the Modified Adjusted Gross Income (MAGI) requirements or other need-based requirements or Medicare if you are 65+ years old.<\/p>\n Beyond that, it\u2019s a wild world of marketplaces. You can use the public marketplace through the Affordable Care Act, private marketplaces through individual insurers, or a health sharing network which usually is religious in nature (but there might be a secular one out there).<\/p>\n You can also use something like Oscar Insurance, which is a private insurance company that offers more affordable options, or Freelancers Union which is an organizational network of freelancers that offers a range of benefits with the cost of membership. There\u2019s also COBRA if you\u2019re leaving a full-time role to freelance and want to continue your current plan (although it can be pretty pricey).<\/p>\n Creative Circle freelancers also have access to a range of plans through a vendor called Benefits in a Card (BIC) throughout assignments<\/a>. The details are emailed to every CC freelancer upon accepting an assignment.<\/p>\n All that said, plenty of people opt out of insurance coverage and pay out of pocket whenever they need something. That strategy is obviously dicey though, especially in the event of an unanticipated emergency.<\/p>\n TL;DR \u2014 here are some of your top options:<\/p>\n For a more in-depth look at healthcare options for freelancers, check out this nifty blog post<\/a>.<\/p>\n Depending on what you do, you may need some kind of professional liability and\/or indemnity insurance. The purpose of liability and indemnity insurance is to protect you if someone tries to sue you, whether you make an error or they\u2019re injured in your office space. There\u2019s a lot of debate as to whether you really need it, but it all comes down to what you do and what your risk tolerance is. Most folks arguing for liability insurance are trying to sell it to you, but that doesn\u2019t necessarily mean they\u2019re wrong. Even for freelancers with solid engagement agreements and disclaimers, a signature may not protect you everywhere.<\/p>\n For more info, check out Freelancers Union<\/a>.<\/p>\n There\u2019s also media insurance, life insurance, disability insurance, and business interruption insurance. What?? But if you want to be covered for every kind of scenario, I guess you have options. In researching for this piece I came across this article<\/a> about a freelance journalist who got sued. Luckily the publication he wrote for defended him, but if you\u2019re writing about touchy subjects and people who might take offense to your words, media insurance may be something to consider.<\/p>\n Check out more solid advice here<\/a>. And, of course, you can consult with a lawyer, accountant, or other professional to see what your specific needs might be.<\/p>\n The great part of freelancing is you can choose your time off. The downside, of course, is you don\u2019t get paid for it. While some sick pay options were granted during peak COVID<\/a> in the form of tax breaks, that seems to be over permanently. Ditto for unemployment benefits which were offered to a certain extent under the CARES Act<\/a> as Pandemic Unemployment Assistance, in addition to PPP loans which played a similar role in replacing lost wages. However, now that those funds and programs are running out, we\u2019ll probably land right where we started.<\/p>\n Some states do have sick leave laws, so you\u2019ll have to check to see if your location qualifies you for any sort of compensation (which Creative Circle does apply to its candidates in those states), but if you\u2019re contracting or working with your own private clients, it likely won\u2019t apply to you either way.<\/p>\n The solution for the average freelancer is to make sure your rates are high enough to cover yourself when you fall ill or want to take a vacation. However, places like Freelancer\u2019s Union now offer plans you can pay into to receive paid leave benefits<\/a>.<\/p>\n When it comes to parental leave, freelancers will have to make hard choices about how they want to manage their business. Reducing clients, ending projects, and taking time off to care for a little one without even a partial paycheck to balance the load can be stressful and intimidating. Unfortunately, the United States has no mandated protections in place for expecting contractors, and few if any companies offer any sort of benefits to freelancers or part-time employees. (They aren\u2019t even required to pay their full-time employees on paternity leave, just guarantee they will have a job upon their return after 12 weeks<\/a>. And that\u2019s just for the birthing parent.) All we can do is our best to plan and save for any intended leave of absence.<\/p>\n Odds are when you\u2019re freelancing, you\u2019ll get a 1099-NEC or 1099-MISC (this differentiation is new) at the end of the year instead of a W-2 which is what someone employed full-time would get. (Why are tax forms so complicated??) That means you don\u2019t automatically pay your taxes with each paycheck. My first freelancing gig in 2012 had me on a 1099 and I, a fresh out of college financially illiterate noob had no idea I was supposed to save some of those paychecks for tax time. I got slapped with a hefty bill and was very freaked out.<\/p>\n We live, we learn, and now I meticulously calculate every little thing. I keep a running spreadsheet that tracks my income, business expenses by category, quarterly estimated tax payments, and more. Some folks with larger businesses might prefer a more automated system like QuickBooks; others may hire their own bookkeeper. It all depends on how much you make and how much time you have. There are tons of financial planners and accountants that can help you make the best decision for your business if you are like me and didn\u2019t get the tax 101 in your younger years.<\/p>\n Here\u2019s a more in-depth look from TurboTax<\/a>. But remember, there are FREE sources for filing taxes online if you want to do this yourself and not pay for TurboTax. There is an episode of Hasan Minaj\u2019s Patriot Act that dives deep into TurboTax<\/a>.<\/p>\n Note: If you\u2019re freelancing for Creative Circle, you\u2019ll actually receive a W-2, so as long as you fill in the right deductions, you won\u2019t have to worry about withholdings while on assignment.<\/p>\n Another arena where freelancers are on their own is when it comes to retirement savings. While some salaried roles may offer a pension (which is unfortunately way less common for non-government jobs these days) or a 401K plan (hopefully one they match), a freelancer must save on their own. The most common options would be a Traditional or Roth IRA<\/a>, and there are also some folks who can put together their own 401K plan if they make enough. Consulting with a financial professional would be a good option if you don\u2019t know where to start. Many institutions like Fidelity also offer assistance to prospective account holders.<\/p>\n While this one is more of a perk, it\u2019s important to consider how much money you\u2019re spending in these areas. Some wellness costs like gym memberships can be offset through health plans. Meanwhile, transportation should either be factored into your rates or negotiated into a contract if you have to travel onsite for meetings and projects, especially with rising gas prices.<\/p>\n Are you a freelancer? Do you have more tips or questions about navigating the wild world of our unhinged and unsupported reality? I\u2019d love to hear from you! Feel free to email me: acalderin@creativcircle.com<\/a><\/p>\n <\/p>\nHealth Insurance<\/h4>\n
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Indemnity + Liability Insurance<\/h4>\n
More Insurance?<\/h4>\n
Sick Pay, Paid Time Off, + Unemployment<\/h4>\n
Parental Leave<\/h4>\n
Tax Withholdings<\/h4>\n
Retirement Savings<\/h4>\n
Wellness + Transportation<\/h4>\n