Does anyone do contract work?

[loskadoodle]

I was approached with an opportunity. Great rate but only 20 hours a week. I would love the extra time but would prefer to be in the 25-30 hours range. How negotiable is this? Also how easy or hard is it to get the next position? The reason I'm a good fit is because I have experience in a specific erp software that is not a very common skill set. So i would probably need to find another company using this software. The billable rate will gross me close to my current salary by only working 20 hours a week but no benefits. I'm on all of my husbands insurances but will no longer have 401k or bonus opportunity I'm assuming.

I'm in a full time position right now. But I have a 45-60 min commute that's killing me. We don't NEED my income but I like working and I make good money.

[redheadk]

Don't forget that you will also have to pay the employer portion of taxes as a 1099 worker so your taxes will increase.

[loskadoodle]

Dec 14, 2015 22:31:16 GMT -5 h said:

I am a contractor. My work hours vary. It averages out to ~20 hours a week, but I could work more if I wanted to. It's a similar situation to what you posted--my rate is high enough that the money I make working 20 hours a week is not that much less than what I made working full-time (and more than I would make at most full time jobs in my current city since we moved to a lower COL area). But I have no benefits, no bonuses, an unpredictable income, and little job security. Plus the tax implications of being an independent contractor.

It is ultimately worth it to me for the flexibility. My H has a stable, secure job with great benefits, which makes it doable.

How much negotiating were you able to do when it comes to hours? Do they guarantee you anything? How log is your contract?

[loskadoodle]

Oh also do you travel to them? If so do they pay your travel?

[loskadoodle]

Dec 14, 2015 22:39:49 GMT -5 @kirkette said:

I do, and have for 6ish years with the same few companies. It's really common for people in the education world.

I don't have a set number of hours a week. I negotiate on a project by project basis. The money I earn is just more fun money for me. It's easy, and fun, so I rarely turn opportunities down, as long as I'm okay with the rate. My rates range from $25 - $40/ hour to  a little over $7k for a 6 week onsite commitment. 

redheadk,  is right about the taxes. It can make things messy. I work with our accountant to make sure I'm not shooting myself in the foot. 

What is messy about it? I thought u just pay both employee and employer?

[bunnymendelbaum]

I am and I do my own projects too. I don't have set hours and my rate is pretty high, so it's worth it for the flexibility. I travel a bit for work and they pay for it all. Things are good now, but got not as fun during the recession when work wasn't as plentiful. You won't be eligible for unemployment .
Would you be working from home? I like it, but it can get lonely. I do get to deduct my home office, internet, cell, etc. The taxes for 1099 stink, but I am just diligent about deductions.

[loskadoodle]

Dec 14, 2015 22:51:38 GMT -5 bunnymendelbaum said:

I am and I do my own projects too. I don't have set hours and my rate is pretty high, so it's worth it for the flexibility. I travel a bit for work and they pay for it all. Things are good now, but got not as fun during the recession when work wasn't as plentiful. You won't be eligible for unemployment .
Would you be working from home? I like it, but it can get lonely. I do get to deduct my home office, internet, cell, etc. The taxes for 1099 stink, but I am just diligent about deductions.

Yes wfh. I wfh for 7 years before I took my current job earlier this year though so I know what I'm in for there.

[SJ]

I second the idea of hiring an accountant.

You should also look into SEP IRA and other retirement options. There are some really attractive plans with higher contribution limits of you are self-employed.

[anna7602]

I don't think I make as much on my own as the other people who have answered. The tax part has not been a big deal. As a pp said, I deduct my home office and some other work-related expenses, plus we use an FSA account for childcare (which means I have to make a certain minimum income every year, if I understand the guidelines correctly).

Most jobs I do now, I negotiate a fixed rate per project and then the hours it actually takes me to finish said project vary widely. But I've also signed on as a contractor getting paid by the hour, with a cap on the number of hours I could bill for a given project and the need for sign-off if it looked like I was going to go over that.