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Backsliding , may go back for some contract work
06-08-2015, 01:00 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 2,223
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Backsliding , may go back for some contract work
Have been asked if I am available for contract work ( same employer , roughly same job ).
Will only do it if I can pick the location , supervisor , and no more than 2 days a week. Will see what transpires.
Pay is the same rate, however the 11.5% pension contribution and union dues no longer are deducted, so that is like a 12% raise. Medicare tax is still taken out, but I don't think SS tax is.
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06-08-2015, 01:17 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Jun 2007
Posts: 2,657
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If SS tax isn't taken out, then do you owe self-employment tax? That will be double your old FICA deduction.
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06-08-2015, 01:27 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 2,223
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Quote:
Originally Posted by growing_older
If SS tax isn't taken out, then do you owe self-employment tax? That will be double your old FICA deduction.
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It's municipal gov. , didn't contribute FICA during my time there. AFAIK, Local Gov. and certain non-profits can chose for employees to be in SS or be exempt.
Will find out this week.
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06-08-2015, 04:38 AM
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#4
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Thinks s/he gets paid by the post
Join Date: May 2014
Posts: 1,867
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At least your out I can't pull the trigger...
Sent from my iPad using Early Retirement Forum
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06-08-2015, 06:11 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Jul 2002
Posts: 1,587
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If Medicare taxes are deducted, you are returning to the ranks of an employee and not as a contractor. Possibly not covered by your old union agreement and not building up credit in the municipal retirement plan.
That said, if you can do it on your terms, it may be a little extra income and work well for you. Need to check if this work has any ramifications on your pension.
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06-08-2015, 07:13 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Jun 2007
Posts: 2,657
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Quote:
It's municipal gov. , didn't contribute FICA during my time there. AFAIK, Local Gov. and certain non-profits can chose for employees to be in SS or be exempt
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I do not know how this would work, because while local government employees can be exempt from SS, I don't believe their suppliers and contractors are automatically exempt. Might be something to consider when asking how it would work.
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06-08-2015, 07:26 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2008
Posts: 12,659
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I'm working 2 days a week for my old employer for hourly wage only, no benefits. I draw my full pension from OPM.
I'm technically a contractor, but I'm also considered an employee...the employer deducts OASDI and Medicare from my check. Whoever came up with this arrangement was a genius. It's a win-win: I make the same hourly rate as a "real" employee, yet I'm "cheap labor" for my employer (since they don't have to kick in for retirement, health insurance, or vacation days).
The only bad thing is, it won't last much longer.
Amethyst
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
Even a blind clock finds an acorn twice a day.
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06-08-2015, 07:27 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
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Are you bored? Need the money?
If not, don't do it. The dark side, and all that...
__________________
Have Funds, Will Retire
...not doing anything of true substance...
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Backsliding , may go back for some contract work
06-08-2015, 09:12 AM
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#9
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Moderator Emeritus
Join Date: Aug 2007
Location: Northern Illinois
Posts: 16,602
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Backsliding , may go back for some contract work
I had essentially the same deal- 2 days a week, one of which from home for my last year. But I got tired of it - wasn't worth it.
The $ I would have netted wasn't worth more to me than the free time.
Sent from my iPhone (:.using Early Retirement .//82339)
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06-08-2015, 10:07 AM
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#10
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Recycles dryer sheets
Join Date: Feb 2010
Posts: 416
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Very similar to what I've been doing for the past two years since I retired. Part time very flexible hours and they pay me a flat hourly rate for the hours worked. Lately though it is becoming more annoying to have to work at all. But I'll try to stick it out for one more year until my wife retires. It has enabled me to not have to touch my retirement funds yet so that is working out well!
Sent from my Nexus 7 using Early Retirement Forum mobile app
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06-08-2015, 05:35 PM
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#11
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Recycles dryer sheets
Join Date: May 2013
Posts: 127
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Quote:
Originally Posted by Amethyst
I'm working 2 days a week for my old employer for hourly wage only, no benefits. I draw my full pension from OPM.
I'm technically a contractor, but I'm also considered an employee...the employer deducts OASDI and Medicare from my check. Whoever came up with this arrangement was a genius. It's a win-win: I make the same hourly rate as a "real" employee, yet I'm "cheap labor" for my employer (since they don't have to kick in for retirement, health insurance, or vacation days).
The only bad thing is, it won't last much longer.
Amethyst
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If I'm reading this right, you're an employee of a contracting agency who is contracting with your former employer. Is that correct? if it works the way this usually does, the contracting agency is being paid much more than your hourly rate -- usually around 2x -- and pocketing the difference. You should try and go direct, if possible. Also, since you have no sick leave, vacation, or benefits you are being paid considerably less (probably around 25-30%) than your former salary. If you can, find out what your former agency is paying the contracting agency.
One rule of thumb for short term contracting is that you should be paid the same/hr as your salary divided by 1000.
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08-06-2015, 09:27 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 2,223
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Looks like it's going to happen starting a few weeks from now. I get to pick the location and supervisor. The management request has to go through some hoops, Mayor's office has to sign off on this , of all things
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08-06-2015, 09:55 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,545
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I wouldn't touch this for less than 1.75% of your former salary when reduced to an hourly basis. Personally, I would ask for 2x your former salary. If they don't buck up tell them to pound sand!
__________________
FIRE'D in July 2009 at 51...Never look back!
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08-06-2015, 11:17 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 2,223
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Quote:
Originally Posted by RockyMtn
I wouldn't touch this for less than 1.75% of your former salary when reduced to an hourly basis. Personally, I would ask for 2x your former salary. If they don't buck up tell them to pound sand!
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The only way to get that type of money with my skill set is to be self employed, working for " The other side " . High daily rate, very irregular income.
The proposed work is a regular schedule of 20 hrs per wk, two 8hr days, one 4 hr each week, my choice of days in most cases. Relatively easy work, mostly office, very little field work or public contact.
The odd thing , before I retired, my management always rated me very high on public contact work, and that was one of the things about the job I hated . I guess being skilled at something , and liking it are not always linked.
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08-07-2015, 12:30 PM
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#15
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,346
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Quote:
Originally Posted by Lakewood90712
I guess being skilled at something , and liking it are not always linked.
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Very true. I've been told by more than one person that I could make a good living doing house painting. Not in this lifetime!
__________________
When I was a kid I wanted to be older. This is not what I expected.
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08-07-2015, 12:33 PM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,021
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+1
It might be a living but from my perspective it darn sure wouldn't be "good"...
__________________
Numbers is hard
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08-07-2015, 02:26 PM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2008
Location: On a hill in the Pine Barrens
Posts: 9,722
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Quote:
Originally Posted by RockyMtn
I wouldn't touch this for less than 1.75% of your former salary when reduced to an hourly basis. Personally, I would ask for 2x your former salary. If they don't buck up tell them to pound sand!
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The job you left, and the skills you used there, help shape how much you'd need to go back, and how much they'll offer.
In this case, gov't can do whatever it wants, right? The relationship with the body_shop was probably there already.
I was offered this deal after permanent layoff:
- reduced hourly wage by 15% at least.
- no more than half-time for the entire year
- absolutely no benefits. no disability, no nothing.
Just had to turn down that great deal...
As I expected, I could earn a very good rate for doing similar work at home, or by telecommuting. And I do it on my schedule.
This is how I measure contract work, whether there is a job_shop or temp_agency in the middle, or I get the entire rate. Will the take-home pay keep me feeling worthwhile?
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08-07-2015, 02:32 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2008
Location: On a hill in the Pine Barrens
Posts: 9,722
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Quote:
Originally Posted by Lakewood90712
The only way to get that type of money with my skill set is to be self employed, working for " The other side " . High daily rate, very irregular income.
The proposed work is a regular schedule of 20 hrs per wk, two 8hr days, one 4 hr each week, my choice of days in most cases. Relatively easy work, mostly office, very little field work or public contact.
The odd thing , before I retired, my management always rated me very high on public contact work, and that was one of the things about the job I hated . I guess being skilled at something , and liking it are not always linked.
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Do the job, earn some money, and find something else if you don't like the situation. Easy for me to say, without really knowing anything about the environment.
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08-09-2015, 06:54 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 1,495
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Quote:
Originally Posted by Lakewood90712
Have been asked if I am available for contract work ( same employer , roughly same job ).
Will only do it if I can pick the location , supervisor , and no more than 2 days a week. Will see what transpires.
Pay is the same rate, however the 11.5% pension contribution and union dues no longer are deducted, so that is like a 12% raise. Medicare tax is still taken out, but I don't think SS tax is.
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Oh I'm definitely going to do it. Especially since every cent I earn will go to vacations!
Backsliding? I don't see that. Look at it this way: you can end the agreement any time you want and go back to doing...nothing.
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10-18-2015, 10:00 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 2,223
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I'm going in at 7am tomorrow. 2 days a week .Did get to chose the supervisor and location. Limited by city administrative code to 120 days / 1,000 hrs , whichever comes first.
If it sucks, I may stay just until the section backlog is cleared. The supervisor says they are trying to snag one of the regular civil service guys in December to fill this spot.....Been hearing that for 4 years When I left last year , I was told a replacement would fill the spot the next week. That never happened.
Large part of why I retired, chronic under-staffing of the section. Went from 5 including supervisor in 2009 down to 2 including the supervisor. No change in workload , haphazard triage on the cases, sometimes politically motivated (another thing I hated ). This will increase the non supervision staff of the section by 100% , to two.
One negative thing, the prev. manager pushed to get me back , and then transferred to another section, the manager I will have is new to management and also had no say in my hiring . Not real comfy with that. The new manager should of had the choice. Found this out at the last minute
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