Contract work question

This may be a bit off topic for the NP forum but this is the only forum i've ever participated in really.

I haven't ever worked a contract job, am not familiar with the ins and outs, however one has presented itself to me. A friend was trying to explain the points to me quickly over the phone, but I don't think I understood everything he was saying. Specifically, can anyone provide more input as far as what things I need to be wary of when negotiating salary/rate/benefits? I know there are a few tax issues I need to be careful of as far as whether they are covering unemployment, etc.. but I don't really understand completely what things can make the contract job different as far as pay goes compared to a normal position.

It's an implementation job that is going to require some limited travel overseas, i.e.- "10 days every 2 months" or something around that. Normal working hours aside from that, as far as I know.

Thanks for help.

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Comments

Paul Boz

Usually contract employees aren't given the same benefits or clearances that "normal" employees are. Is it a "contract work with potential full time position later" or purely a contract with a predetermined termination date?

Steve10393

Long term, 1-2 years, I would assume only for the duration of the contract, and with "partial benefits" is what I was told. I am not responsible for paying some form of additional taxes on top of normal state, fed, SS, and medicare am I? It's just the potential lack of benefits that people refer to as less money?

Paul Boz

Well that and the instability of the work. It's tough to dedicate 1-2 years of your life to a company and it just be done with one day.

mikearama

I'm pretty sure contract in the states is similar to here in Canada.

Generally, giving up benefits/pension(IRA)/vacations translates into substantially more money. Case in point, my last contract at Toyota paid $45 hourly, while the identical fulltime position (with all the perks) paid $32 hourly.

And since you are your own business, the business write-offs equate to substantially more of that money staying with you.

One suggestion, if you take the gig... keep your books up to date constantly. There's nothing worse than coming to year end, and having a year worth of receipts to go through. And I let myself get behind on paying taxes a few years ago... not only is that tough to dig out from under, but the government doesn't take too kindly to deliquent clients. They'll be all over you like flies on crap.

Steve10393

ok I found out more information about the job today, and I am considered a full time employee to the staffing company, i.e. not an independent contractor, I guess. The thing is, this is my first job after getting the CCNA and CCNP, so I am very light on experience so I can't be real picky.

cisco_trooper

Just make sure you are a W-2 employee and not a 1099 employee. If you are a 1099 employee negotiate for more money, because not only are they not going to take taxes out of your check (ie. you get to write Uncle Sam a nice check at the end of the year), you also get to pay the 6.2% (approx.) of social security tax that they normally kick in on the back side, so be careful in that regard. Also, I don't know if you a have a family, but benefits are damn expensive. All things to keep in mind during negotiation. Just my nickel worth. Do with it what you will.

Steve10393

I'm single, male, 29, so benefits are no big deal.

Thanks for the advice guys.

jamesp1983

Contracting isn't that bad. Its just terrible having the mad scramble to find a job after the contract's end. If you have a contracting company that will keep giving you work then it's not bad.

Aquabat [banned]

**WARNING**

stay AWAY from these cnotract companies. everytime they email me. for some 3 month job that is located 500 miles away, i tell them to suck it.

do not be nice to these people, they don't care about you. whether or not you are qualified they just want to fill the position with whomever they can. and if something goes wrong ( like you get your paycheck screwed over) they will NOT go to bat for you.

they care about their clients, not about you

networker050184

Talk about a broad statement.... I'm sure there are some bad ones out there, but I don't think they are all bad.

Aquabat [banned]

networker050184 wrote:

Talk about a broad statement.... I'm sure there are some bad ones out there, but I don't think they are all bad.

ive had nothing but bad luck. when someone emails me, to work 500 miles away as a network admin for 3 months. it just makes me mad for some reason

networker050184

I know people who love that kind of thing. My uncle travels all over the world for contracts like that. Hes in Oman now for a year. Thats the longest contract he has been on in years. He likes moving all the time I guess, not for me though.....

mikearama

I've also enjoyed contract work. My last one at Toyota Canada was my shortest yet, at just about 9 months, while the three previous to that were all for 18-24 months each. One of the three could have been for longer, but I'd had enough.

The only issues I experienced were:

- No benefits. With four kids under 12, I miss dental benefits. Same with vacations... not paid.

- Paperwork. Oh my god... do not leave all your receipts till year-end. That was stupid. I've since come up with a monthly regimen, and even that's painful.

- Taxes. Make sure you set aside 25% for year-end income tax. I didn't my first two years, only to find myself unable to cover taxes. I assume uncle Sam is as belligerent as uncle Canuk when it comes to owing taxes. Oh, and hey, if you do your deductions properly, there'll be a big chunk of that 25% left over for you to enjoy. Bonus.

As for recruiters... I've had two different companies represent me to clients, and both have been awesome. I would have to agree with Aqua that their first responsibility is to the client, but make no mistake, their continued use by the client is solely based on their ability to find a good candidate, and not piss the client off. Putting the wrong person in a role would qualify as **** them off. My recruiters have been very thorough with me before recommending me for a role.

My positions have been all across Toronto... but dayum, would landing a network role in the Caribbean ever be sweet. I'd relocate the family to Barbados/Grand Cayman in a heartbeat.

Hope that helps,
Mike