Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: Worker Shortages and Impact on ER
Old 09-04-2006, 06:58 PM   #21
Recycles dryer sheets
perinova's Avatar
 
Join Date: Apr 2006
Posts: 424
Re: Worker Shortages and Impact on ER

Is contracting the same as being self employed?
You set-u your solo-401k,you buy your own health coverage, your vacation is unpaid, between contracts=no pay either.
To come out ahead financially you need to get at least 2.2x hourtly wage. Can you get this through an agent?
__________________

__________________
perinova is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Worker Shortages and Impact on ER
Old 09-04-2006, 08:24 PM   #22
Recycles dryer sheets
 
Join Date: Apr 2005
Posts: 184
Re: Worker Shortages and Impact on ER

"Worker shortage" - seems hard for me to believe.* Major forces not supporting a "shortage":
* * *- Large pools of immigrants (not just unskilled)
* * *- White collar offshoring (just beginning - we haven't see anything yet)
* * *- Large numbers of 60+ boomers not able to retire and still working
* * *- Continued productivity increases

I also do hope that "professional part time" opportunities increase - I think they will because of technology (internet/videoconferencing/etc) - not because of any worker shortage.

I read an article about "Virtual Companies" - companies where nearly all functions are outsourced webs of independent contractors - teams are pulled together for products/projects from people around the world who collaborate electronically.

I'm hoping to "downshift" to contractor gigs for 20 hours/week - preferably in different cities/countries.* *
__________________

__________________
Delawaredave is offline   Reply With Quote
Re: Worker Shortages and Impact on ER
Old 09-05-2006, 12:36 AM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
 
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,293
Re: Worker Shortages and Impact on ER

Quote:
Is contracting the same as being self employed?
You set-u your solo-401k,you buy your own health coverage, your vacation is unpaid, between contracts=no pay either.
You're getting warm!* *

Quote:
To come out ahead financially you need to get at least 2.2x hourly wage.
I think your numbers for benefits may be high or maybe your base pay is low.* I make about 60% more than a staff engineer (have made more, but not today).* I work afield as an engineer and can get up to 35% of my income as per diem (or the local equivalent), which is not reported for taxes.* I need this to live but if I can live cheap, it goes home.

We get our health insurance through my wife's job.* We used to get it through COBRA.* A pre-existing condition prevents us from getting an individual policy, but we have managed so far.

I have not contributed to my retirement funds for several years trying to pay off debts, including college for two kids.* What retirement pot I do have has doubled in the last 5 years, so I am not too worried.

Quote:
Can you get this through an agent?
Very seldom can I get work as a real independent.* I tried to have a company once but it did not work for me.* I work through an agency as an independent contractor, if that makes any sense.* I usually find my own job.* The agency takes care of billing and other paperwork and pays me regularly even if the customer is slow to pay them.* For this, they take a small cut.* If they found me the job, they would take a higher percentage.* They also advise me on local rates and terms.

Quote:
Quote from: Ed_The_Gypsy on September 04, 2006, 02:08:22 PM

Be aware that once you go contract, you will forever be a pariah.* Seldom will a company hire someone who has been a contractor.* They fear your independence and your unwilllingness to work unpaid overtime.

Ed

!
Not true at all in my experience. Contracting was the best way to get job offers. They 'try' before they buy
OK, I exaggerated.* In fact, I once got a staff job that way.* However, in my case, I cannot afford to take a staff job now, even if I wanted to.* There has been nothing anywhere near home and relocation is generally not available (even if I could get the wife to consider moving).* My profession is a dying one and opportunities are thin, unless one travels.*

Contracting does have its attractions including relative isolation from office politics, but it is not for everyone and there are negatives.

Ed
__________________
my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy is offline   Reply With Quote
Re: Worker Shortages and Impact on ER
Old 09-05-2006, 06:55 AM   #24
Recycles dryer sheets
 
Join Date: Apr 2005
Posts: 184
Re: Worker Shortages and Impact on ER

Quote:
Originally Posted by Ed_The_Gypsy
I work through an agency as an independent contractor, if that makes any sense.*
Do contractor agencies pay you under a W2 or a 1099 ?* Do you have a choice ?* *If it is a 1099, I'm assuming you can be "set up as your own business" - with you as an employee - and deduct business expenses assoicated with finding/executing your contracting - correct ?

If it is a W2,* my understanding is expenses are deductible only above an AGI percentage.

Thanks for any comments.
__________________
Delawaredave is offline   Reply With Quote
Re: Worker Shortages and Impact on ER
Old 09-05-2006, 07:58 AM   #25
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Worker Shortages and Impact on ER

If it's W2, then you are not an independent contractor, you are an employee getting wages with the employer deducting FICA and taxes.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: Worker Shortages and Impact on ER
Old 09-05-2006, 05:06 PM   #26
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: Worker Shortages and Impact on ER

I'm technically an employee; but if my employer doesn't get a contract, I'm toast.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: Worker Shortages and Impact on ER
Old 09-05-2006, 10:26 PM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
 
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,293
Re: Worker Shortages and Impact on ER

Delawaredave,

I am contracting in Canada. I don't get a w-2.

When I contract in the US, I am not an independent contractor. I am an employee of the shop and I get a W2, but I only get paid when they have a contract. I can't deduct anything, but I do get a big chunk of my compensation cut out as per diem.

It is not complicated. Better than trying to do it 100% on my own.

Ed
__________________
my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy is offline   Reply With Quote
Re: Worker Shortages and Impact on ER
Old 09-06-2006, 06:08 PM   #28
Recycles dryer sheets
perinova's Avatar
 
Join Date: Apr 2006
Posts: 424
Re: Worker Shortages and Impact on ER

Quote:
Originally Posted by Delawaredave
Do contractor agencies pay you under a W2 or a 1099 ? Do you have a choice ? If it is a 1099, I'm assuming you can be "set up as your own business" - with you as an employee - and deduct business expenses assoicated with finding/executing your contracting - correct ?

If it is a W2, my understanding is expenses are deductible only above an AGI percentage.

Thanks for any comments.
yes you are right about the deductions. I am not sure if there is always a choice but you can at least try to find the type of contracting that suits you better:
W2 (employee of contract agency). unreembursed expenses on 2106 and schedule-A is valid only if you itemize
1099 (under your own SS) use schedule-C
CORP-to-CORP (under your company SS) S-copr use schedule K and that's a lot more complicated.
Maybe an unincorporated business can use schedule-C I am not sure?
__________________
perinova is offline   Reply With Quote
Re: Worker Shortages and Impact on ER
Old 09-07-2006, 10:02 PM   #29
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: Worker Shortages and Impact on ER

Quote:
I read an article about "Virtual Companies" - companies where nearly all functions are outsourced webs of independent contractors - teams are pulled together for products/projects from people around the world who collaborate electronically.
How about outsourcing management or CEO?
__________________

__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 08:04 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.