Ask FreelanceSwitch #23: Identity Theft and Scope Creep

Editor’s Note: Due to time commitments, Travis King will unfortunately no longer be writing answers for the AskFreelanceSwitch column. However, Thursday Bram will continue to hand out excellent advice for any freelancing quandry! For more Travis King, make sure to check out his Friday articles exploring the lighter side of the freelancing lifestyle, including Part One and Part Two on coffee! Take it away, Thursday!

In this issue of Ask FreelanceSwitch, we are looking at identity theft and clients who want more work than is in the scope of the contract.

Ask FreelanceSwitch is a regular column here that allows us to help beginners get a grip on freelancing. If you have a question about freelancing that you want answered, send an email to askfreelanceswitch@gmail.com.

Question #1

I am a freelancer in graphic design who is starting work remotely now that onsite jobs are scarce. Is it safe, if you work with so many clients, to give out your social security number whenever a client asks for one. For instance, if a client I only know through the internet has only a few hours of graphic design work for me (5 or 6) and it is a one-time gig totaling less than $250, am I supposed send that person all my sensitive information including social security number and anything that goes on a w-9 form? 2 have asked me to email my social to them and I fee that is not safe. Also, I don’t have any way of proving that they are a legitimate company that I can trust with that info. It’s hard since my whole life it has been drilled into my head never to let anyone have my social security number because of identity theft. These days, all someone has to do is pretend to have graphic design gigs and demand someones social and other info for tax purposes and viola, they have everything they need if they are a criminal. I thought maybe I should give my info for a w-9 form if the work is more than a few hours at least. What do you do or advise?

Thanks,
Dee

Unfortunately, giving out your tax information is a necessary evil when it comes to freelancing. Refusing to complete a W-9 form can get you in trouble with the IRS and you’re expected to have one on file with any client you work with. However, there are a few ways that you can limit your risks for identity theft and similar problems. The most important step you can take is to confirm that you are working for a legitimate business. If you can’t find any information on your client by running the company’s name through a search engine. it doesn’t necessarily mean that there is a problem — but it’s worth being a little wary. Ask the client to pay half of the project fee up front and sign a contract before you send along your W-9. If he or she agrees to do so, you’re probably safe.

You can also apply for an Employer Identification Number through the IRS and provide that number, rather than your Social Security number. However, you do have to be operating your freelance business as a partnership or a corporation to be eligible for an EIN, which may not be worth the hassle unless you’re freelancing full-time and work with quite a few different clients.

To be perfectly honest, though, sending your Social Security number to a client isn’t high-risk behavior for a freelancer. While I’ve heard of the concern before, I’ve never personally met a freelancer whose identity was stolen by someone claiming to be a client. Provided you check your credit history regularly for signs of identity theft, your risk level is fairly low.

Question #2

I had a client that ordered a flash project. Everything seemed to go fine, but then he wanted more and more little things that in our contract. So I told him: “ This wasn’t in our contract, if you want more features you need to pay me more money.”

I get the response: “Then I want my money back.”

We reached a comprise, and I just did I little bit of work for free. But I felt so stupid after.

How do you handle with these kind of clients that thinks that everything is free?

Thank you!
Anton

You did the right thing by asking your client to stick to the scope of the contract — some clients will respond in the way that this particular client did, but you are well within your rights. Most clients will be reasonable when you stand up for your rights, too. While some expect everything for free, those clients who do not work with freelancers regularly may simply not know just how the process works. Educating them in a helpful way can keep them on track.

When a client is unreasonable, however, and shows no sign of being willing to stick to the contract or increase the scope of the project with payment, life can get a lot harder. It’s best to head such situations off as early as possible. Simply responding to additional requests with an estimate of how much a particular task will increase their final invoice and asking for approval to move ahead can send the message.

Personally, when I get unreasonable clients, I’ll finish up the original project as soon as possible and get my invoice sent out. I won’t send final files until that invoice is paid, either. I’d much rather have to write a few emails to collect my payment and not get any repeat business from such a client than wind up doing a pile of unpaid work. As freelancers, we have the right to be paid for our work and we can’t let anyone bully us into thinking otherwise.

Send in your freelancing questions to askfreelanceswitch@gmail.com.