Job offer advise, which should I pick...

[AzNKiD]

I was just offer a part time position with this small company, and they gave me the opportunity to pick from either being a consultant or part time title. The differences that she explained to me were that consultants will be if I just bill them and I have to take care of all the taxes and etc. But with part time title, I would be part of the company and taxes will be done by them. I pretty sure both option will not include benefits and the pay rate will be the same, so which offer should I select? Job is IT and will be doing around 20 hours per week. Also, I not very familiar with the accounting system, and that?s why I would like to know other?s opinion on this subject. Can some one give me some pros and cons with either choice? Thanks in advance.

 

[OdiN]

Well if you are fine with doing all of your taxes...and actually put away the taxes you owe to the government out of each check (and a bit more in case) so that you can pay for the taxes come April...then I'd go with consultant. That frees you from being an employee...so you could also consult for other companies and take payment whereas if you were an employee this wouldn't be kosher most likely.

 

[hypn0tik]

I honestly think 'Consultant' would look better on your resume if you plan on switching jobs in the future.

Edit: Spelling.

 

[AzNKiD]

So you think taxes will be lower if i become part time title instead of consultant? Agian, I not very good with book keeping and accounting. ill probably wont be doing any offical consultant with other companies. I think it has come down to rather it would be worth the hassle/trouble to do my own taxes for a noob as me. Unless there is a major $$$ differences with being a consultant, i dont see how it could benefit me. what am i missing with being a consultant?

 

[OdiN]

If you aren't good at taxes...just pay someone else to do it. Just be sure to keep very good records. Keep receipts and keep a log of all the mileage you do in your car for work related stuff. If you buy some tools, write them off. Write off the mileage and wear/tear on your car. Write off everything you can.

I would do consultant...just make sure you know a good tax person.

 

[yourdeardaniel]

consultant sounds better on your next resume

 

[radioouman]

consultant

 

[EagleKeeper]

Dig up this years tax thread for ideas/explanations/references.

Going independent can be benificial, however, you need to track every $ that you spend for any reason to really get the ost benift.

Put aside 1/3 of your salary into a non-touchable account.
At the end of the quarter, divy up that money to the state and Fed according to the percentage of taxes for 2004.