Working as a Contractor

I am hoping for some guidance as in the past everyone has steered me in the right direction. I am leaving my company and they've been pushing for me to stay on as a contractor. Basically, their idea is, in the event the weekend NOC guy calls out they'd like to have someone to fill in. Their making a pretty generous offer (not totally finalized and I think I might get some more money) and it seems like an ok deal. I've been given the general contract that they use, but it will be revised slightly for the purpose of the role that I will be used for. That being said I am having some reservations. Personally, I feel like this is being pushed for reasons other then wanting to not lose me. If I had to guess, they are afraid to lose customers, and the language of the contract seems to keep me from doing that. Obviously, I'm not going into the MSP business or into the lone IT guy business. Also, I would be responsible for taking the correct amount of taxes out myself, which I have never done before.

My reasoning is I could really use the cash. I have some debt I want to get paid off and 25 to 30 an hour would be really nice. Any words of wisdom would be awesome!

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Comments

DigitalZeroOne

I work as an Independent contractor, I prefer it, but only because my wife has a job with full benefits so I am covered under her health insurance. I'm probably going to be short with my answers (working right now). You may want to hire a tax professional to handle your taxes, there are a lot more deductions that you can take when you are independent. I would skip places like H&R Block and go with a true tax professional. You need to be diligent about saving your money for taxes, you don't want tax time to roll around and not have enough money to pay the IRS.

I generally like contracting, I work more because I only get paid when I work, so no holiday pay, or sick days, but the pay makes up for it. Are you doing this as a supplement to your full-time job?

Everyone

How much were they paying you as an employee? $25 to $30/hr as an independent contractor may be REALLY low depending on the type of work. Obviously this sounds like an occasional part-time gig, since you'd only be filling in on weekends.

I recently picked up a couple side projects as an independent contractor/consultant. Same reasons as you, have some debts that would be nice to pay off. I'm paying them off with what I currently make, but accelerating the pay off would be great.

The first project should get me about an extra $3k gross after taxes and fees for about a weeks worth of work.

I jokingly offered to stay on as a contractor when I left my last job, just until they either found a replacement, or the pending acquisition was complete. Didn't happen, so it's kinda cool they offered that opportunity to you.

instant000

25 to 30 per hour at face value seems like not that much.

Is that just what you get paid for weekend calls, or are they guaranteeing you pay for a minimum number of hours?

If they're not guaranteeing you a minimum number of hours, they could just be using you as a cheap "get out of jail free" card.

Let us know how many hours you're guaranteed to be paid for on a weekly basis, and whether or not you're on this contract based on how many hours you work on them, or if they're paying you a rate to "be available" to them.

Everyone

Yeah to add to instant000's point... I'd want some money just for being available, depending on language in the contract. If you sign something saying you have to be available every weekend just in case this other weekend guy gets sick or decides not to show up, and you don't get compensated for it unless you actually work... well that is going to suck in a hurry. It will be very bad if there are any consequences in the contract for you NOT being available.

the_Grinch

Well, I probably make about $20 dollars an hour right now. Basically, if the weekend guy calls out they will call me and ask if I want the hours. If I say no, they will attempt to fill it with the regular staff members. I always have the option to say no and there will be no guarantee of hours. That being said the weekend guy takes every holiday off, so I stand to get a fair amount of hours. Thus, I believe you would be correct, I am the get out of jail free card. I have a person who does my taxes every year so I could probably go to him and have him help me out in that respect. Thanks for the info guys!

effekted

I'd try and get closer to a $45-50+ hour since it's weekend work and like some others mentioned, compensation for being on call (since you have the option to turn them down when they call this may not be an option). Don't sell yourself short because most companies dish out some serious $$$ for contractors.

the_Grinch

Yeah, my company would never pay me $45 an hour that's for sure. On call can be used loosely, since I have to option to tell them no. Again thanks for all the advice and tips!

Forsaken_GA

Walk away.

I've had other friends who were in this same position, and without fail, the company used something in the contract to screw them over.

Given your other thread, this was not an entirely amicable parting.

I'm telling you straight up, walk away. Make the break as clean as possible.These are the people who told you that you weren't worth what they paid you, correct? Don't be a doormat, get these guys out of your life.

Now, if you choose otherwise, then spend a little money and have an attorney familiar with employment contracts go over the contract with you, and explain which possible sections may not be beneficial to you. When he finds them (he will), decide if you can live with them. If you can't, go back to the company and get them to change it. If they will not, then as I mentioned before, WALK AWAY.

And finally, there's no way in hell I'd do this without some kind of guarantee of cash involved. At a bare minimum, I would require a retainer that was good for, say, six months, for you to be available. Your working hours could be deducted from the retainer, but if they never fully used it, you'd still have a positive gain. Being available is worth something, whether or not you do any work. Don't give it away for free (which is exactly what you're proposing to do).

effekted

Forsaken_GA wrote: »

Walk away.

I've had other friends who were in this same position, and without fail, the company used something in the contract to screw them over.

Given your other thread, this was not an entirely amicable parting.

I'm telling you straight up, walk away. Make the break as clean as possible.These are the people who told you that you weren't worth what they paid you, correct? Don't be a doormat, get these guys out of your life.

Now, if you choose otherwise, then spend a little money and have an attorney familiar with employment contracts go over the contract with you, and explain which possible sections may not be beneficial to you. When he finds them (he will), decide if you can live with them. If you can't, go back to the company and get them to change it. If they will not, then as I mentioned before, WALK AWAY.

And finally, there's no way in hell I'd do this without some kind of guarantee of cash involved. At a bare minimum, I would require a retainer that was good for, say, six months, for you to be available. Your working hours could be deducted from the retainer, but if they never fully used it, you'd still have a positive gain. Being available is worth something, whether or not you do any work. Don't give it away for free (which is exactly what you're proposing to do).

Forsaken_GA hit the nail on the head.

Zartanasaurus

effekted wrote: »

Forsaken_GA hit the nail on the head.

As usual.

the_Grinch

Took everyone's advice and said "Thanks, but no thanks." I don't think they were too happy about it, but better to save myself the headache. Sooner I am out of here the better as suddenly my vacation/comp time is screwed up and reading that I owe the company a total of 8 hours. I found it awful convenient that this occurs when after asking for 3 weeks if I was working the observed Christmas holiday (12/26) they tell me 5 days before that I was. Couldn't give me an answer on whether it would be for comp time (this is my last week here) or overtime, then bam I owe 8 hours in time. Yes it is as fishy as it sounds and I went through all my timesheets for the year and matched up each day of vacation/comp time with a date and for totals. Also, informed my manager of the mistake to assure that there isn't a fast one being pulled on me.