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Benefits of W2 Position over Self-Employment

By hire-up-staffing in News and Updates

Elisa Weathers
Director of Training & I.T.
April 2023

For many people, the idea of being their own boss and having complete control over their work schedule is a dream come true. However, there are some significant benefits to working in a W2 position over being self-employed. So, before you leave your salaried life behind here are some of the advantages of working in a W2 position:

  1. Steady Income: one of the biggest benefits of a W2 position is that you are guaranteed a regular income. This is not the case with self-employment, where you may have a slow month or two that could impact your earnings significantly. This means you have a steady and predictable income, which can help you plan your finances and budget more effectively.
  2. Benefits: most W2 positions come with benefits such as health insurance, retirement plans, paid time off and other perks. These benefits can save you money and provide you with security and peace of mind. Health insurance for example, can be prohibitively expensive if you are purchasing it on your own. Retirement plans are also important as they provide a way to save for your future and ensure financial security in your later years. Paid time off should never be overlooked as this is another benefit that can make a big difference in your quality of life, as it provides you with the opportunity to take a break from work and recharge your batteries.
  3. Less Risk: when you’re self-employed, you bear all the risk of your business. If you don’t have enough clients, you may not have enough income to cover your expenses. In a W2 position, your employer takes on the risk of the business and you have a guaranteed income. You can rely on your employer to provide you with steady work, and if there are any issues you have legal protection and can potentially receive unemployment benefits. In contrast, self-employment can be unpredictable and there is no guarantee that you will always have work. If your business hits a rough patch, you may find yourself struggling to make ends meet.
  4. Employer Support: as an employee, you have the support of your employer. If you have questions or need help with a task, you can turn to your supervisor or colleagues for guidance. This support can help you grow and develop in your career.
  5. Training & Development: employers often invest in training and development opportunities for their employees to help you learn new skills and advance in your career. This can be valuable in building your resume and making you more marketable in the job market. As a self-employed individual, you may not have access to the same training opportunities, and you may need to spend your own time and money to improve your skills.
  6. Consistent Schedule: having a good work-life balance means being able to allocate time and energy between work and other aspects of life, such as family, hobbies, and social activities. This can help reduce stress and increase overall well-being.

Overall, working in a W2 position has many benefits over being self-employed. While being your own boss may seem appealing, the stability, benefits and support that come with a W2 position can provide you with security and peace of mind.

Elisa Weathers, Director of Training & I.T. | April 2023

Elisa is the Director of Training & I.T. for the entire Hire Up company. Before coming to Hire Up Staffing & Healthcare Services, Elisa previously worked for a staffing agency as a Training & Development Specialist. She has worn many hats in the staffing industry, including recruiting, sales, training, operations, marketing, and compliance. One professional goal of Elisa’s is to develop a powerful training program at Hire Up. Her hope is that new hires will feel welcome & well-prepared for their role.