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Newneighbor
Citizen
Username: Newneighbor
Post Number: 128
Registered: 3-2003
| | Posted on Monday, June 5, 2006 - 11:41 am: | 
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Here's the situation. I have an infant and I work 4 days a week at 80% of salary. It's working out fairly well although friends have mentioned how wonderful being a contractor is - paid by the day at a much higher rate, flexibility to not work when needed, etc.
The many pros sound wonderful although the cons seem to be: not guaranteed employment, pay your town taxes, no 401k although the higher salary partly makes up for that, still pay for daycare when not working, etc.
My goal would be to constantly have employment and not work when I want to work. I need to work so I would always try to have a full plate although I'd still like to work 4 days a week. (have my cake and eat it too, you know? 
Looking for advice from those people who have been marketing contractors or any type of contractors out there as to your experiences, whether it's a great thing/not so great things, etc. |
colleen
Citizen
Username: Bean2005
Post Number: 32
Registered: 6-2005
| | Posted on Monday, June 5, 2006 - 11:56 am: |
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when your an independant contractor you also have to pay BOTH ends of social security. that killed me the first year.
good news is you can write off a bucnh more on your taxes, car, home office space, etc. |
greenetree
Supporter
Username: Greenetree
Post Number: 7922
Registered: 5-2001
| | Posted on Monday, June 5, 2006 - 12:02 pm: |
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I have a friend who did this so that she could be home with the kids. If you can go on your spouse's health insurance, it's not a bad idea. But, she finds herself working more than she expected. Since it's from home, she can still go to soccer games and meet the school bus. But she finds herself putting the little one (he's 2 or 3?) in day care when she has a deadline.
The main downside is that your projects will come in clumps: you may find yourself working crazy hours for a deliverable, edits, etc. and then choose not to take on another project for awhile. We hire contractors and freelancers all the time. Our expectation is that they will meet our deadlines and how they do it is not our problem.
So, it is unlikely that you will have the luxury of working 4 days/8 hours when you work for yourself. |
Krista
Citizen
Username: Shortgrrrl
Post Number: 109
Registered: 2-2005
| | Posted on Monday, June 5, 2006 - 1:23 pm: |
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hey new:
(i think we know eachother, btw!)
i was a freelancer for a bit when i first had my son. i found the situation about paying for childcare while not working something i didn't want to risk...yes, i was making more money, but what if i had a long period between work? i would have to pay someone anyway...i go the sitter route, so it isnt like i can hire someone only to fire them after a couple of months or weeks, then get someone else...and day care is the same...you pay regardless of when you go (although totri has drop in...)
luckily, i found a situation where i can work part time, and from home 2 days a week, so i have a predictable schedule and more time with the baby...
anyway, i think it comes down to whether you feel comfortable with the risk of spending money on childcare when you are not at work...and if the increased salary will cover the difference...
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papayagirl
Citizen
Username: Papayagirl
Post Number: 560
Registered: 6-2002
| | Posted on Monday, June 5, 2006 - 1:33 pm: |
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No advice on the pros and cons on that particular field of work, but definitely factor in all of the time you'll have to put into lining up your next gig. Sending out resumes, fielding phone calls, going in for interviews, negotiating schedules so that one job ends just as the next one is set to begin, turning down work in anticipation of something bigger that later falls through... it definitely takes time and effort, and nobody will be paying you for it.
Don't take this to mean i think you shouldn't do it... there are definitely upsides, as you've mentioned. This is just the downside that i know i couldn't deal with over and over again. |
ess
Citizen
Username: Ess
Post Number: 2158
Registered: 11-2001
| | Posted on Monday, June 5, 2006 - 2:04 pm: |
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Newneighbor, I have been a freelancer/contractor and I can share some of my experiences.
First, if you are going to do this, incorporate. Form an S-corporation; you can use an attorney, or you can go through www.legalzoom.com for a lot less (and they will provide you with a name search and all the necessary paperwork). You will save about 15% in taxes if you incorporate. You can also write off a lot of business expenses.
I agree with most of the above. There are certainly pros and cons. You will be able to charge a higher hourly rate, but you will also have to pay for benefits yourself. You also will have to spend a lot of time seeking work. One thing you could do is affiliate with a placement agency that would be able to identify clients with needs for contractors.
Also, you may be able to work on-site.
My children are in school already, and I was able to get them every day when I was consulting, without having to hire childcare. I worked on-site and and home. Frankly, however, if I could land a four day a week permanent position with benefits and a 401(k), I would snap that up in a heartbeat. |
moving soon
Citizen
Username: Movingsoon
Post Number: 112
Registered: 12-2004
| | Posted on Monday, June 5, 2006 - 2:26 pm: |
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You can write off lots of stuff w/o incorporating. Incorporating comes with increased accounting/reporting issues. I'm not saying it's not the way to go, but most of the independent contractors I know work as sole proprietors, not as s-corps.
One other huge issue to consider: health insurance. That's the killer for me. My spouse isn't employed, and the rates for family insurance for an independent are crazy, crazy, crazy. |
Charlie
Citizen
Username: Cking27
Post Number: 9
Registered: 3-2006
| | Posted on Monday, June 5, 2006 - 2:30 pm: |
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I used to work PT for 24 hours a week with 3/5 salary and benefits. I didn't use the benefits b/c we were on my husband's. I did this for 3 years after my son was born. When my daughter was born, I left for a year and am now back working for the same company as a contractor. I chose to go back as a contractor because of the increased pay. I've been doing it for a year now and am negotiating going back with them as an employee--maybe even full time.
For me, I've found its so much easier to be an employee than a contractor. Part of it is psychological--I feel very vested in the success of the company I'm working for and most people I've known for a long time know that. However, newer people assume I'm some "contractor" and there are some negative connotations to it. Other reasons I want to be an employee again: 1) not having to worry about each new project and funding and what I'm going to do about child care, 2) getting paid vacations and holidays so I don't have to put in "extra" hours or go without pay during those times. As an hourly contractor, I stress about each hour I'm working/missing work. If I'm on a conference call while the kids are eating lunch--do I charge for that even if I miss a few things b/c I'm getting someone a glass of milk? I never worried about that kind of thing when I was salaried and home with a sick kiddo.
I think a lot of it is based on your personality and the level of uncertainty you're willing to handle. I've found through experience that I'm better suited to the employee thing. |
Newneighbor
Citizen
Username: Newneighbor
Post Number: 129
Registered: 3-2003
| | Posted on Tuesday, June 6, 2006 - 3:29 pm: |
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Thank you everyone for your posts. Very good insights and thoughts on the pros and cons. (Hey Krista!)
I'm still on the fence about what to do as I don't need the benefits and my child will remain in daycare even if I'm out of work as I don't want daycare to become an issue. And, to be honest, i love my daycare. I could potentially work as a contractor with my current job so they can get a full time person in my spot as headcount instead of a full head taking up only 80% of the workload. Still to be discussed with work but an interesting carrot.
Much to be decided and discusses so I truly thank you all!
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