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!
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.
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 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