110k/year (contract) or 85k (salary) + benefits? ***Update: I took Expat Job
- Thread starter Primetime
- Start date
That's pretty much what the software or it industry is... employees being classified as contractors to save companies money. I've actually found its the indian firms more likely to give you employee status than American companies
Yes, but this is technically illegal.
You will get full time status at a american company but it’s hard af. Especially 6 figs and full time.
I’m a full time web/mobile developer at my company but I had to work as a contractor there for 2 years before they gave me a offer. And you rarely get raises after you are on salary unless you relocate to another office location or you leave the company and come back.
I can’t go back to the freelance life though after being put on salary. There’s nothing like not having to worry about your paycheck being short of having to get my timesheet signed my a supervisor every week. I know on 15th and the 1st money will be direct deposited to my bank account.
And like someone else said, when you are on contract, they usually don’t deduct taxes so when you have to file taxes, you usually owe. Also with overtime pay, you rarely take home much of it cause over half goes to taxes.
I was on contract with my last job and I hated it. You are technically supposed to pay your taxes quarterly as well.. If you wait until the end of the year, your bank account might look kind of fat until you get that tax bill for $10,000+ dollars. Another thing is that being on contract, getting paid by the hour, if you miss days including holidays, be prepared for a thinner paycheck or to work on the weekends to make up that time you took off. No benefits so you have to o buy health insurance and dental as well.
Flywin Lannister
Superstar
Depending on how serious you feel you are about this - finding a way to be your own boss - we should talk, I’m in the exact same mindset (also in the corporate world) and want to become my own boss asap.
I’ve been looking into building on an online e-commerce business since February and I’m learning a lot about business and marketing. I could share info and head you in that direction of course and I’d like to hear what ideas you have.
It’s important to have a few people you connect with regularly who are trying to achieve what you want: to support and inspire each other
If interested, holla at me on here in a Conversation
I would in your case take the contract until you can support yourself with your new businesd unless you’ll leave <6 months
Synopsis:
I've been with my current company a couple years now working contract: $52-53 an hour, 40 hours a week. No overtime and no PTO for vacations, holidays or sick days. And of course, no health care, dental or 401k [I pay for the healthcare stuff, mostly just to avoid the tax penalties]. So basically i can pull upwards to 110k a year but realistically it'll always be somewhat less bc i'll obviously take days off throughout the course of a year.
Mind you i'm healthy, fit, no wife or kids, so all i do is stack up cash. Only debt i have is student loans of course
So my supervisor and I were talking and it was brought up that I was still contract. He said he could make a case to his higher ups for moving me over to salary, but asked if i'd prefer that because it'd mean a lower base pay for the added benefits. He didn't get into specifics bc this was all very informal but I figure it'd be around 80-90k, but with good to great company benefits.
I told him I wouldn't mind finally being able to take a vacation and shyt without losing money lol but now its got me thinking. My folks been told me to get on that salary+benefits train, and so have other people. Esp with the 401k. Obviously if it was the same $$$ amount it'd be a no brainer but I wanted to see if there were opposing thoughts to taking less or how much less?
If they convert you to perm
How many days of vacation will you get?
How many holidays will you get?
Is there a yearly bonus program for staff employees?
What 401k match peecent would you get as a staff employee?
Stock options?
Are there any other things that you can't really quantify that you would gain (less likely to be laid off, quicker promotion, etc?)
How much do you pay for healthcare on your own?
How much would you pay if you converted to a perm employee?
All of this info is needed for an accurate comparison
I'm assuming you're w2 already. Is that correct?
I'll never go perm again, just not worth it. Taxes are lower (Im in the UK), pay is higher, and I can take a month off inbetween contracts with zero problems.
ALL OF THIS!
There are pros and cons to each. I’m a salaried HR professional and am considering going back to contract work for the higher pay rate.
Getting health insurance through my job saves me $15 a month vs going thru the state - big whoop, but do the math.
Vacation is dope tho
Consider short term and long term goals also.
My short and long term goals revolve around debt and property ownership. I want to pay down my student debt quick fast and in a hurry.
Higher pay rate will help me do so. I also tend to only consider my post tax salary, I mean those are the real numbers there.
OC's finest
All Star
i actually have a very similar situation right now
at my current job i have a salary with w2 and have the BEST benefits
ive been offered a job with substantial more money, but i'd be a 1099 independent contractor
i won't put the numbers here cuz ppl will call ducktails,
but google this for help:
"w2 vs 1099 salary" and there should be some pdfs with general ballparks
also, as a 1099 you can write off a lot more for tax purposes
you will be double payroll tax tho (under w2, your employer pays half of this).. i've heard for a general rule of thumb you gon be paying about 1/3 of your gross salary to tax under a 1099. the tax will def be higher than as a salaried employee w/ a w2, plus you lose out on any benefits including insurance (about $300 in my state), 401k match your employer may have, and any other benefits
pm me if you want more details
at my current job i have a salary with w2 and have the BEST benefits
ive been offered a job with substantial more money, but i'd be a 1099 independent contractor
i won't put the numbers here cuz ppl will call ducktails,
but google this for help:
"w2 vs 1099 salary" and there should be some pdfs with general ballparks
also, as a 1099 you can write off a lot more for tax purposes
you will be double payroll tax tho (under w2, your employer pays half of this).. i've heard for a general rule of thumb you gon be paying about 1/3 of your gross salary to tax under a 1099. the tax will def be higher than as a salaried employee w/ a w2, plus you lose out on any benefits including insurance (about $300 in my state), 401k match your employer may have, and any other benefits
pm me if you want more details
Virtuous_Brotha
Superstar
That contract shyt gets tired after a while (unless you find work promptly after it expires) been out of work going on a month next week with no indication of when my next pay check is plus i suck at interviews 
Last edited:
David_TheMan
Banned
Hang in there breh its rough out there.That contract shyt gets tired after a while (unless you find work promptly after it expires) been out of work going on a month next week with no indication of when my next pay check is plus i suck at interviews
MrPentatonic
Superstar
Free healthcare is a Godsend, I can imagine healthcare in a jobs package is a big factor in other countries
Reid2Achieve
Superstar
They would most likely be paying more for you to have benefits and PTO than they are for you to be contracted.
OC's finest
All Star
Just to update coli bruhs on my situation, I accepted the 1099 job. I got a good accountant so ima write off everything to reduce my taxable income. Further, I spoke to an account specialist at vanguard and ima setup my own 401k and ur allowed to contribute up to 55k.
Can get my taxable income really really low if I max out that 401k and with the write offs.
Can get my taxable income really really low if I max out that 401k and with the write offs.