Going from permanent role to contractor.
I realise benefits in permanent job are better but is 32k increase on W2 worth moving to contractor?
This would be fully remote and permanent roles I have interviewed for are hybrid
I have been in a contractor in the past and with current layoffs the new role is with a stable industry. Not sure if waiting for permanent role will take too long as need to get out of a toxic work environment. anyone else been in this position?
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Anonymous
It is impossible to say as we do not know your current pay.
I usually add around 50% to get the contractor’s rate. You can calculate it for yourself. Add your annual bonus, vacation, personal and sick days, holidays, 401k match, health insurance, and any other benefits that you use.
Anonymous
Make sure you tally up how much you'll have to pay in health insurance, taxes (if they won't be deducting/remitting on your behalf), etc. That'll eat away at the $32k. In addition, what about paid leave and other perks dependent on tenure as an employee (bonuses and commissions, for example)? Would those somehow be accounted for under the new arrangement? In addition, banks sometime won't accept 1099s when considering mortgage and other loan applications; if that's something on your horizon (and it's not clear if this contract role would actually be W2 or 1099), best to check with your bank, accountant, etc. $32k is certainly an amount worth a hard look, and other perks, such as being fully remote, can be worth their weight in gold. Best of luck to you!