Backsliding , may go back for some contract work

[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.

 

[growing_older]

If SS tax isn't taken out, then do you owe self-employment tax? That will be double your old FICA deduction.

 

[Lakewood90712]

If SS tax isn't taken out, then do you owe self-employment tax? That will be double your old FICA deduction.

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.

 

[rayinpenn]

At least your out I can't pull the trigger...


Sent from my iPad using Early Retirement Forum

 

[RE2Boys]

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.

 

[growing_older]

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

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.

 

[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

 

[HFWR]

Are you bored? Need the money?

If not, don't do it. The dark side, and all that...

 

[Ronstar]

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)

 

[SteveNU]

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

 

[Fred123]

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 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.

 

[Lakewood90712]

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

 

[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!

 

[Lakewood90712]

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!

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.

 

[Walt34]

I guess being skilled at something , and liking it are not always linked.

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!

 

[REWahoo]

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!

+1

It might be a living but from my perspective it darn sure wouldn't be "good"...

 

[target2019]

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!

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?

 

[target2019]

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.

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.

 

[Options]

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.

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.

 

[Lakewood90712]

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

 

[Amethyst]

Oh, I just saw this. I'm a rehired annuitant, under special rules approved by Congress. Absent this special arrangement, few of us retirees would agree to return, because our pensions would be docked.

The "contracting agency" is me

OPM provides my "benefits" (basically, by paying my pension and contributing to my health insurance).

My hourly pay, before taxes, is about 50% of my old salary divided by 1000. (After taxes, it is so much less that I am starting to wonder if it is worth it).

Amethyst

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.

 

[Tekward]

I was just asked today if I wanted to return to the university. It's an easy "No thank you." I left because of new management, and in less then a year they have run a great department into the ground. The biggest benefit of FI for me was the freedom to leave a deteriorating situation early.

 

[Lakewood90712]

Finished week 2, took about that long to get access to multiple systems, cell phone and equipment. The supervisor went on vacation the day I arrived LOL.

Not much changed, seeing mostly the same people doing the same sloppy work.

I promised the supervisor I would stay at least until the current backlog is gone.

The manager says she may get a permanent body to occupy this desk in December. ( They have gone thru 3 temporary re-treads like me in this particular section so far).

She said December. I forgot to ask, " December of what year"

 

[Lakewood90712]

6 mo. update: Going well , still working about 100 hrs. per mo., and being treated very well.

About 6 of us re-treads currently on staff , half were much higher then I was on the food chain before retirement. No word on renewal of employment next fiscal year .

Never would have left if I was treated like things are currently.

 

[target2019]

6 mo. update: Going well , still working about 100 hrs. per mo., and being treated very well.

About 6 of us re-treads currently on staff , half were much higher then I was on the food chain before retirement. No word on renewal of employment next fiscal year .

Never would have left if I was treated like things are currently.

Just about the time you made this decision, I was working from home, and being paid very well. That came to an end late summer, and out of the blue I got a really good offer for FT. Yes, a job.

It has worked well. As you found, the new circumstance can chase away much of the angst. This could end in September. Or it could go on for another year. I'm pretty happy with the cash flow, so just taking it as it comes.

If you are a decent worker, and lower on the food chain, it just may continue as long as you wish.