I am retiring at the end of the month. A coworker confided in me that my company is going to ask me to continue working as a temp to cover for someone who will be out on medical leave. I would consider this depending on the length of time they expect me to stay and if they make it worth it financially. What would be reasonable for me to request as I have already made plans, appointments etc.?

7 Comments

1. AnonymousJune 16,2024 at 8:10PM UTC

   Thank you

2. AnonymousJune 16,2024 at 8:19PM UTC

   I would ask for 3x your regular hourly pay -whatever that works out to. The consulting agreement should be drafted by a lawyer and since you will not be paid benefits or bonus or have taxes withheld your 3x multiply takes care of that on your end. The employer saves payroll taxes on their end and expenses your invoiced services.

   Since you will be a contractor, your agreement will allow for your scheduled hours and so your plans and appointments will be according to your discretion. You will let the company know your availability. This language will be in your Agreement they will sign or you will not agree to work for them during this time.

   If you do the math 3x is good for you and relieves the company of the chaos of training someone from an agency to cover and putting the burden on team to pick up the slack

   You must look at this as a business partner NOT an employee. It must serve your needs as well as theirs.

3. AnonymousJune 16,2024 at 11:07PM UTC

   I agree with doubling or tripling your salary if you will be working for a short time, will not be earning company benefits and presumably will be paying all income taxes, rather than your employer contributing.

4. AnonymousJune 17,2024 at 3:11PM UTC

   Congratulations on your retirement. From what I've heard (from folks who leave work or who have retired), employers typically seek your time and skills so it's a good idea to have in your head what you value, what you will volunteer and what you will charge for. Make that clear in your communication and document it. Create a website if you'd like.

   The good news is you call the shots now. Yes, once you temp, you do the work, but when, how much, how long, and for what rate, that's your call. So, if you have dates you cannot work, you let them know (ahead of time). If they say it doesn't work for them. Just say, I'm sorry, but that's what I can offer. Do you want me to come when I can or not? Let them decide.

   If you'd like to help (either because you like the people, the mission, or the idea of making money), have a conversation to consider the offer. Make sure if you do come back, that you are clear with your peers (either by chatting or via HR email) of how your role has changed. That way, there is no scope creep of tasks.

   Personally, I'd separate items. Nothing just in conversation.
   Ideally, fully retire first, then start as a temp, perhaps in the next month.

   Definitely increase your rate. 2x or 3x, some chat rooms suggest 4 or 5x, depending on the work and the skillset. Most suggest 3 x to start no lower than 2 x. Always ask higher and if they balk, it's in their court to negotiate. (You may also have a scale for types of work or who you help- friends/family / non profit rate vs. others, etc.). Your call.

   Create a document of understanding. Determine how much/when you'll work. (What days/ hours. E.g. if you want to work M-F mornings for 4 weeks at X rate, after that, must renegotiate, then do that. ).

   If you don't have a firm representing you, determine if you're invoicing or if employer is sending a P.O. Agree to all terms before you work. Read up on 1099 tax status/ Independent contractor and consider if there are other insurances you need.

   Good luck.

5. AnonymousJune 17,2024 at 8:42PM UTC

   Double your rate or make it 1.5 times what you were earning. Do not get in the emotions or feelings about those you care about. This is business. If you're on social security, or will be, which I mentioned above, check with the administration before negotiating to see if there are tax liabilities. If you are that valuable, they will find the funds. And like the poster above said, get it all in writing. Do not work a 1099. It's messy, tax issues, just do a W2. I've been a contractor twice. I only work W2. It's less messy tax-wise.

6. AnonymousJune 17,2024 at 4:53PM UTC

   Congratulations on your retirement! I would wait for them to ask you first, think on it and then come back with what you expect from them as far as your time and pay. I would absolutely ask for a higher pay and hours that aren't so rigid if you can do that, instead of 8-5 can you do 9-4 or something like that.

7. AnonymousJune 17,2024 at 8:36PM UTC

   Consider your current salary, breaking it down by the hourly wage, then you double it. If you are invited to work as a temp, only work on a W2, not a 1099 (or you will have to hold back your wages at least 50% - to be safe) and pay the IRS and your state taxes. For example, if your hourly wage is currently $27hr, roughly 56K or so per year, then ask for $40hr. The reasoning? You are not getting benefits so they are not reducing the benefits from the amount they are paying you. I see this all the time where I work. The amount will also depend on if you are receiving social security. Check with the social security administration on how much you can earn per year without being taxed. That could also help as a guide. If you are not receiving social security yet, that's easier, and you can ask for whatever you want. Keep us posted and good luck to you!