Regular income fluctuations make anyone anxious, and self-employed workers are particularly vulnerable. In addition to completing their work on time and well, independent contractors must also manage every aspect of their business, from sales and marketing to taxes and bookkeeping. The ups and downs of contracting and consulting aren’t for everyone.
Traditionally, 1099 workers don’t have access to the same kind of benefits as your W2 employees. But if you’re building a freelance team you’re excited about—and want to keep for a long-term engagement—it’s important to offer more than just a gig to build that relationship.
Offer access to health insurance with mental health benefits
According to a survey from Kaiser Health Foundation, 13% of Americans who needed mental health services didn’t get them because of the expense. If your contractors do decide to go to a therapist or counselor without insurance, or with basic plans with no-frills coverage, the costs can add up pretty quickly. In pricey cities like New York City, therapists often charge as much as $200 per hour. Platforms like TalkSpace and Better Help offer digital Cognitive Behavioral Therapy (CBT), which is a less expensive option, but still requires access to health insurance.
You can help your team get access to the care they need. As part of being on the Wingspan platform, contractors get access to pre-vetted licensed brokers to help purchase health, vision, dental and life insurance benefits beyond what is available as individuals. And for a fee, contractors can purchase big company benefits, called Premium Perks, including 24/7 Teladoc telemedicine.
Connect your contractors to financial tools
Mental health remains expensive, even for the hundreds of thousands of Americans who truly need it. But there are options for independent contractors to save. Many contractors may not know that self-employed individuals who itemize their deductions can deduct mental health expenses that exceed 7.5% of their adjusted gross income. For example, if your adjusted gross income for the year totaled $40,000, you can deduct mental health costs once you spent $3,000 out of pocket.
With Wingspan, you can help your contractors manage their finances more easily. They get a free business bank account with a debit card that includes ATM usage and instant deposits, plus free tax management with automatic tax calculation, withholding, and IRS payments.
Reduce anxiety in your working relationship
Every contractor is different—some love the freedom that comes with self-employment, while others white-knuckle their way through the ups and downs. Beyond offering professional benefits, consider your working relationship.
If this is a contractor you want to stick with, making the investment in managing the contractor lifecycle more effectively can go a long way to building a strong working relationship. Is there a way to add more predictability to working together? For example, you could set up a monthly recurring 1:1 with your contractor about their upcoming projects. Or you can work on shifting to a retainer model so you know exactly what work will get done each month, and they can better plan their finances.
But the best way to add predictability is by creating a transparent payment process. With Wingspan, that’s easy. Our platform automatically generates invoices and allows contractors and employers to see exactly what work has been assigned and what’s ready for payment. See how Wingspan can help you build a bench of contractors that stick around for the long haul >
.jpg)
