Have you gone from full-time to contract worker for the same company?

posted 3 years ago in Career
Post # 2
Member
302 posts
Helper bee
  • Wedding: June 2013

I have!  It actually wasn’t my idea (was let go but asked to stay on as a contractor) but it is working out really well for me!  I work for a consulting firm which requires almost full-time travel, so being able to pick and choose the projects I work on is great.  I am making a lot more than I was as a full-time employee, but I no longer get medical/dental/401K, etc. which sucks.  However, I just transferred to my husband’s insurance, so that part was no biggie.  I would say you definitely have leverage to up your hourly rate, especially if you are forgoing benefits.  If you calculate my hourly rate from when I was salary, my rate now is ~33% higher.  The only other thing that’s a pain is taxes…the government doesn’t automatically withdraw them anymore (at least for me) so I have to submit an estimated tax payment every quarter.  I hope this helps, let me know if you have any more questions!

Post # 3
Member
2891 posts
Sugar bee
  • Wedding: May 2015

Mrs. Gremmlin: I went the other way contract to salary but you should definitely get much more than 10%ish. You will have to pay self employment and quarterly taxes plus insurance, vacation time etc so 36-40/ hr is more appropriate. Keep in mind you aren’t eligible for unemployment and they can cut your hours anytime so the extra $$ is for essentially small business overhead. 

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