Establishing your hourly rate as an independent contractor might be challenging. As a 1099 contractor, you are in charge of determining your own hourly rate, in contrast to typical employment where your company determines your rate of compensation. Your hourly rate must include your qualifications, work history, place of employment, sector of business, and other elements.
As a 1099 contractor, figuring out how much to charge can be challenging because you want to make sure that you are appropriately compensated for your labor while being competitive in your sector. Charge 20–30% more than you would for a full-time role as a general guideline. This is due to the fact that, as a 1099 contractor, you are in charge of covering your own taxes, health insurance, and other benefits that are generally provided by an employer.
Now let’s talk about paying contractors via Venmo. Although Venmo is a well-known peer-to-peer payment software, paying contractors using it is not advised. This is so that it is clear from Venmo’s terms of service that the app is only meant for private, non-commercial transactions. Venmo may freeze your account and request further verification if they believe you are using the app for commercial purposes. It is advised to utilize a business payment app like PayPal, Square, or Zelle in its place. These apps offer extra features like invoicing and payment tracking and are made especially for business operations.
In conclusion, you must carefully assess your expertise, experience, and sector when determining your hourly fee as a 1099 contractor. In order to cover the extra costs you would face as an independent contractor, it is advised to charge 20–30% more than you would for a full-time position. Even though Venmo is a well-liked payment app, it is not suggested for commercial transactions. Pay your contractors instead using a business payment platform like PayPal, Square, or Zelle.