Going from permanent role to contractor.

Anonymous

November 16,2022 at 1:55PM UTC

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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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Pat RoqueNovember 16,2022 at 2:18PM UTC
Only you can answer these questions, but it might be a simple matter of literally writing down the positives and negatives. I don’t know your needs in your benefit requirements etc. But you should be able to do the math as well as your family priorities because sometimes the flexibility of 100% remote is worth any amount of money, and that plus the 32,000 is certainly well in your range to change jobs and get you out of a toxic situation.
I would also just caution that the term “secure industry” is almost nonexistent these days and so we all guess our best but the economy is in a crazy spot right now so figure out what your mental wellness is worth, we all just have to make the best decisions we can and make those leaps of faith where they feel like the benefits outweigh the negatives. Hope that helps.
Shelly EdwardsNovember 16,2022 at 2:31PM UTC
It all depends on your priorities. Contractor often times means benefits are on your own. Can you afford to do that? Is the remote important to you or are you ok with a hybrid role? How much longer can you tolerate the toxic environment? Can you take the contractor role while continuing to look for a more permanent role? Only you can answer these questions.
AnonymousNovember 16,2022 at 3:02PM UTC
For me personally, I would jump at the opportunity for an increase of $32k. But if you do the math, add up all of your perks on the permanent job, health care, profit-sharing, 401k match etc. and if it is significantly less than $32k that's a no brainer. I believe you can get your own health care coverage on the marketplace for a fraction of the $32k and still have a substantial amount left over.
AnonymousNovember 16,2022 at 5:00PM UTC
yes you can get your own (and other family members) on the marketplace inexpensively and still good coverage. I've done it for years.
AnonymousNovember 16,2022 at 7:03PM UTC
Thank you yes and agencies have health insurance benefits you can buy which I have done before. I weighed this up and worked out increase and taking off the number of time off I usually take/ company holidays. So although health insurance bigger cost it is not significant.
AnonymousNovember 16,2022 at 3:52PM UTC
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!
AnonymousNovember 16,2022 at 4:11PM UTC
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.