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full time job or contractor position?

brianmanahan

brianmanahan

Lifer
if you had to choose between full time job or a contractor position what would you do? if the contractor position was paying %250 more than your job, would you do it?
 
If you're young with no one depending on you and (importantly) good at what you do, go for the contract work. May as well make this kind of money while you have the chance, because at some point you likely won't be able to take those kinds of risks.
 
Personally, contractor.

Depends on a lot of factors obviously. But I recruit software developers for a living, and although I'll make more than them in my career, I really envy the fact that they have the ability to take months off at a time and still make a decent living.

If I was in a position where my skills were in demand and I was confident I could get a job sometime after the contract ended, I'd go for the contract.
 
As a pseudo contractor, I would say do the contracting work if you are single and want to make stupid money; but know that sometimes you will be working your butt off for that money.

Right now, I'm working 12hrs/7days overseas and only get two weeks of R&R every four months (or one month every six); however, if I stay for a year ~$80k of that money is tax free. Not all contracts will be like that, but you get the idea that the money doesn't always come easy. Big thing is I may not have a job when I get back home, but that comes with the territory; been working for the same company for three years, so I'm not too worried.

Pros:
1. Good money when you have work.
2. Get to travel around depending on what contract you get on.
3. Great learning environment since you are pretty much thrown at a problem and have to fix it.

Cons:
1. Work can dry up quick depending on your field.
2. The travel can and WILL burn you out quick if it's required.
3. If you don't like high stress environments be careful about what contract you sign up with.

Taxes can eat into your money a bit, but if you get a contract that has you traveling around and you "live" at your parents when not working you can offset that; then, just throw money into savings until you can buy a house outright.
 
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Contractor. You can buy health insurance on your own. If you're married and your spouse gets benefits, then you're set already. Hire someone to help you with the taxes. You're still going to be coming out ahead even if you have to pay more taxes due to a higher pay.
 
her209 said:
Contractor. You can buy health insurance on your own. If you're married and your spouse gets benefits, then you're set already. Hire someone to help you with the taxes. You're still going to be coming out ahead even if you have to pay more taxes due to a higher pay.
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Agreed.
 
if that contracting work ended up being the $180k/yr like you are saying, i'd definitely do the contracting work.

and that is if there is no more than 40 hours a week working.

right now i do software dev as a full time employee of a govt sub contracting company. there is 1 actual contractor who is a software dev and he sucks lol.
 
Most contractor positions will pay no more than 150% of that of an employee unless you have special skills. Your 250% is a pie in the sky dream for anyone except ATOT

The advantage is that you can get paid per hour and expense off things that an employee can not
Disadvantage is that things that the employer does for you in terms of expenses; you have to cover. The main ones are insurance; profit matching, and SS tax.

The best I ever did was the equivalent of $175 per hour for a 50hr week
 
Contractors are often on 1099 .. that means you must pay your estimated Federal and State taxes yourself, on time. Contractors also usually don't pay into Unemployment Insurance, so when the job ends, no compensation from the Feds / State. But a worker on W-2, can get unemployment, as long as they did not get fired for cause. If your employer says to you "you are being laid off", then you can collect with no issues.
 
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I've been on contract and working from a home office since 2002, and have zero desire to go back to being a full time clock puncher again, and having to commute back and forth.
 
I have a part time building maintenance job that would normally pay about $10 around here (since we have a very depressed labor market in North Idaho.) I work it as an independent contractor for $25/hour, so that is 250%. If you are talking peanuts then 250% more isn't that much in reality.

The lack of benefits, proving my own tools, paying my own taxes, no insurance, no unemployment and all the potential tax issues if I screw up make that $25/hour less of a deal than it seems.
 
brianmanahan said:
if you had to choose between full time job or a contractor position what would you do? if the contractor position was paying %250 more than your job, would you do it?
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brianmanahan said:
i was worried about extra tax + govt fees + no benefits + crap like that. still, 180$K could go a long way.
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the first is to cover the second post. when you get a full time job there is a specific burden your employer pays on top of your salary, you just dont see it for the most part. usually around 40% of your salary.

id probably look into how much the ins is as well as the tax burden for being self employed and make the choice after that. likely, if this isnt a permanent position you will end up screwing yourself later down the road. if it is sustainable for a year or two id probably go for it.
 
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