No additional benefits need be paid out, as with a normal employment situation. Invoicing can be done online, and payment can be arranged through secure internet transactions easily at no cost to employer, saving time and cost of mailing paychecks. Communication can easily be facilitated using common internet resources. Online meeting rooms can be available for free to facilitate effective project management. No additional space requirements.
Employer can have a large staff while maintaining a small office space with low overhead costs.
No additional equipment purchases. Since the contractor is responsible for the home office, the contractor usually absorbs these costs. Fewer sick days. No office politics or office romances to interfere with the work requirements. No possibility for injury compensation claims, wrongful dismissal suits or sexual harassment suits which can be costly.