Why am I against the ABC test that’s in the PRO Act and other legislation? People with 9-5 jobs have trouble understanding why freelance small businesses trade in that life & don’t want to be hired as W2 workers. Here’s why. #IRSnotABC 1/18
I can choose my own schedule and work as many or little hours as I want. This means I can say no to assignments I don’t want to do, which I can’t do to an employer. An assignment on a topic I hate to cover? No thanks. 2/18
But what about the guarantee of a 40-hour work week? First, the current legislation doesn’t guarantee this. I also prefer working a bit less & don’t want to be locked into that arbitrary number. 3/18
This freedom gives me time to feed my soul with things I like to do and pet projects I otherwise wouldn’t have time for: creative works that otherwise wouldn’t get made. And I can work to find funding for them so I get paid, too. 4/18
Have elderly parents or kids? A flexible schedule let’s you shuttle them to appointments and be part of their lives in a way W2 work doesn’t allow for. It’s the freedom to live your life like you want to and how it should be. 5/18
I do pay taxes as a business. I’m not sure where the misnomer came from that we don’t pay taxes. We don’t pay into unemployment/disability, which are systems we can’t use, even if we had multiple W2 jobs bc you’d need to lose ALL of those jobs to use unemployment. 6/18
So we plan for it with savings. We also plan for retirement. Being self employed gives us access to accounts only biz owners can use, like the SEP IRA and HSA. We can invest that so we have retirement beyond Social Security, which may or may not be there when we retire. 6/18
As an audio journalist, I have to buy and keep up expensive recording equipment and have a fast computer to be able to do the work. As a W2 worker, I can’t write these off as the legitimate business expenses they are. 7/18
And under what’s being proposed, companies aren’t suddenly providing equipment to part timers who may come in to do one or two stories. That cost still falls on me and it’s a small business expense bc I’m a small business. 8/18
Under this system, companies also aren’t suddenly providing health insurance either. That’s another expense we can legitimately write off as a small business, but not as a W2 worker. 9/18
And let’s be honest, if you’re over 40 or 45, your chances of actually being hired drop dramatically. Ageism DOES exist in hiring. Freelancing removes that hurdle and allows people to continue to work. 10/18
It also allows people to drop their hours as they near retirement, allowing them to remain productive members of the community, while making a little bit extra before bowing out completely. They can work longer into retirement without switching careers. 11/18
I know many freelancers who plan to keep doing stories here and there in retirement, not because they need to financially, but because they want to. 12/18
And successful freelancers aren’t exploited when it comes to pay. I created a multi-tired setup where I make the same as others in the same f/t W2 jobs in my industry, but w/fewer hours and more freedom. If the pay is too low, we either negotiate for more or move on. 13/18
Those who take lower wage, no benefit “permalance” gig work that SHOULD be f/t W2 work are a different class of workers. They are misclassified and should report their companies to the labor board to go after under current misclassification laws. 14/18
If you need help navigating the freelance world, there are freelance resources to help you learn to negotiate and navigate the business world. @SPJFreelance is a great community. @TWC_pod has great tips. @MelEdits has a podcast with lots of tips. 15/18
Ask for help. Other freelancers will tell you what works and what doesn’t work. They’ll help guide you with how to set up your small business. If you do it right, you are not exploited. Freelance life has a different kind of stress, but it’s actually really great. 16/18
Nowhere else do you have this kind of community of like-minded people of all colors and walks of life who value freedom and flexibility. We put life first, which is how it should be. 17/18
When you think of the ABC test, think of all of these freedoms. Don’t take them away from a class of workers that’s happy. Help us in other ways, like by passing laws that help us track down late payments. The IRS test is a better fit for today’s economy. 18/18
You can follow @susanvalot.
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