Full Time employee vs Contract employee

[KamakaziRcr]

Is it worth the swith to switch from a relatively secure full time 'permanant' employee status to a contracting gig that suppose to last for a year and possibly more for $10k/year more in salary. Consulting firm gives full health benefits and 3 weeks PTO plut 8 holidays.



EDIT: By "contract employee", i mean working through a consulting company for a client site as a staff augment. Not as an independent contractor.

 

[Reel]

You have to pay more taxes for independent contractor work. Look up the tax rules and see how it might affect you.

 

[pulse8]

Originally posted by: ReelC00L
You have to pay more taxes for independent contractor work. Look up the tax rules and see how it might affect you.

Only if you don't do the itemized deductions.

 

[mchammer187]

you are still classified as a full time employee though correct just you are now working for a contractor am i correct? this would be fine provided you think you will have a job in a year


if you are going to be considered a contractor for tax purposes IE the employer does not pay half of your SS tax than defintely not worth it unless you are making like less than 35K now
if it is a significant increase in salary 18% or more than it might be worth it but in the end you are not going to be netting much more so it might not be worth it if you are in the 2nd situation

 

[KamakaziRcr]

Crap, I should've clarified, that by 'contract' employee, I mean I'm an employee of a consulting firm working as part of a staff augmentation for a client, not an independent contractor. My withholdings will be held the same way as typical W2s.

 

[AmigaMan]

Originally posted by: KamakaziRcr
Crap, I should've clarified, that by 'contract' employee, I mean I'm an employee of a consulting firm working as part of a staff augmentation for a client, not an independent contractor. My withholdings will be held the same way as typical W2s.

I'm in the same boat as you. I just talked to some folks who have a couple positions open with clients of theirs. I'm seriously considering it even though i'll have to pay my own medical, dental, and any other insurance. They give a $300 allowance for it though. Plus the gigs go fulltime/permanent occasionally. I've got a couple other interviews and leads to follow first though, then I'll try it out.