Independent Contractor vs. Full Time Employee

[Intel_Airman]

I'm sure a good number of you guys have been faced with this at some point after your days in uniform. I currently got the offer tonight to switch from IC to Full Time Employee. Besides looking at the benefits package and how my tax situation would change, what else should I consider?

I've been doing this IC thing for a year now and feel that I have an ok grasp on it, but this would be a major step in a different direction. One thing that makes me kind of shy away from it is that I'm only 28 and the freedom to take time off between contracts is pretty nice. Any recommendations or advice from you pros on the matter would be greatly appreciated.

[plato]

A couple of weeks off between contracts can be enjoyable.

A couple of years off when Co. A is underbid by Co. B, can be less than comfortable.

Originally Posted by Intel_Airman

I'm sure a good number of you guys have been faced with this at some point after your days in uniform. I currently got the offer tonight to switch from IC to Full Time Employee. Besides looking at the benefits package and how my tax situation would change, what else should I consider?

I've been doing this IC thing for a year now and feel that I have an ok grasp on it, but this would be a major step in a different direction. One thing that makes me kind of shy away from it is that I'm only 28 and the freedom to take time off between contracts is pretty nice. Any recommendations or advice from you pros on the matter would be greatly appreciated.

This is sorta like dating a woman. Most men do not take the next step until all options have been exhausted, or not seeing her is not an option either. Most men are happy with current situation until woman says, in not so many words, "uh hum, where might a ring be in our future, do you want a future with me?" The man says, "I've considered it, but never knew until now that your were serious...". Then woman gives man other 6 months. This might happen 2 or 3 times. When episode 4 arrives, man better be prepared for one of two scenarios, either you move forward or not.

Is your employer giving you the option of full time employment or telling you that you must become an employee or not work as a IC?

28 yrs. is still very young, but know this, the years will only begin to start passing quicker with each approaching season. At some point, you will want to consider a retirement, if that is important to you.

I would not make a decision until you have too, but that's just me.

Good luck.

WD

[Intel_Airman]

No, I don't feel like they are pushing me into it at all. I think they just are happy with the way I've worked for them and would like to keep me around long term. That was a fantastic analogy by the way!

[SF0]

I appreciated the freedom doing contracting until I no longer had a steady flow of work. I did not have an option to become an employee, as the company had none to begin with. No income and quite a bit of taxes to pay (didn't quite make enough to save) was not fun.

I agree with wet dog. Personally I would continue contracting until it is no longer viable, prudent, or comfortable for me to do so.

[JJ_BPK]

As a 28 yo with no career established, you may want to reconsider or start to plan your future.

You want to play the contract business, you need to plan to dump money into IRA's as fast as possible. 25% of your income, or better. It takes a good 25-30 years to establish a retirement base. Retiring at 50-55 is not cheap. If your lucky your body will hold out,, if not plan to start driving the school bus at 40 yo..

You also need long term medical insurance to cover those little bumps & bruises that pop up in the contracting business. The reason we say hi-speed is for kids,, is because it beats the pi$$ out of your body and by 45 yo, you hurt LOTS..

This is not optional,, your already 28,, that's 27 yrs to retirement,, your already half way there,, does your bank account look 1/2 full??


Good Luck,,

[DinDinA-2]

What is the Medical Insurance available to you for "on the job" and "off the job" injuries or illness, as an IC?

What happens to your income if you cannot work/complete your contract if you are injured, or become ill on the job or off the job?