Legal and Tax Implications:

Freelancers typically must handle their own tax obligations, which involves paying self-employment taxes and making estimated quarterly payments. They are not covered by employment laws that offer protections such as minimum wage or overtime pay, which means their contracts need to be carefully managed to ensure proper compensation.

Contract employees are sometimes eligible for benefits provided by the employer, depending on the contract terms. They might also receive certain legal protections similar to those afforded to full-time employees. Despite the semblance of stability, contract jobs can end abruptly if project goals are met sooner or if budgets are cut.

As a hobby blogger who covers the freelancing economy, one key point is the nature of commitment. Freelancers juggle multiple clients and projects, offering them a diverse portfolio and networking opportunities. In contrast, contract workers typically immerse in one environment, which can be great for deep diving into industry-specific skills. Each has its strategic advantage, depending on your career goals.