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Typical Contractor Electrical Engineering Rate
2

Typical Contractor Electrical Engineering Rate

Typical Contractor Electrical Engineering Rate

(OP)
Working as a contractor on a short term project not expected to last longer than a couple weeks.

Involves some very basic analog design and some C coding. Admittedly a bit of a senior design project or hobbiest type work.

My first time working as a freelance contractor. My skills typically being in pca design. Any ideas on what I should charge as an hourly rate?

RE: Typical Contractor Electrical Engineering Rate

If you're the contractor, picking  up your own benefits, start at $125/hour... considering the skill level required and the short duration.

If you're working through a shop, they'll have a number in mind... but don't take their first offer.



 

Mike Halloran
Pembroke Pines, FL, USA

RE: Typical Contractor Electrical Engineering Rate

thread731-241486: Questions on Contract Work Is a very similar question and there have been others.

Fundamentally, you'll want to be charging more than as a direct employee to make up for things like health benefits, vacation & other time off, retirement, taxes, costs (if working from home), contingency fund to cover gaps in employment...

KENAT,

Have you reminded yourself of FAQ731-376: Eng-Tips.com Forum Policies recently, or taken a look at posting policies: http://eng-tips.com/market.cfm?
What is Engineering anyway: FAQ1088-1484: In layman terms, what is "engineering"?

RE: Typical Contractor Electrical Engineering Rate

(OP)
Excellent! In line with expectations I suppose.

As this assignment will be less than one week, I believe it is possible to avoid reporting all income to the government on this particular job. Can anyone confirm? I have worked in situations before (non engineering related), where I was hired temporarily by an employer for only a week at a time. He mentioned that being under contract for under week allows him to write a paycheck under the table without any taxes taken out and nothing reported... never asked for specifics as to why.

RE: Typical Contractor Electrical Engineering Rate

2
CWNW, is cheating on your taxes part of your professional ethics program or are you going to try for one of Obama's cabinet positions?  Because a business transaction does not require a 1099 form does not mean that it is not taxable income.  

RE: Typical Contractor Electrical Engineering Rate

I worked for a former employer for one day and got a 1099.

There is no _legal_ duration- related loophole.  

You need to report the income and pay the tax on it.

 

Mike Halloran
Pembroke Pines, FL, USA

RE: Typical Contractor Electrical Engineering Rate

Besides, cheating, what makes you think that if you screw up, the "employer" will not sue you?

Also what guarantee do you have that the "employer" will not report his expenses?


 

RE: Typical Contractor Electrical Engineering Rate

If you make over $600 then your employer is required to give you a 1099.  If you make less it probably wont affect your taxes anyway!  If he doesnt give you a 1099, I'm not sure what all this "pay under the table" stuff is.  He cant effectively expense the costs if he doesn't.  

As for your rate, $125 may be too little for some - too much for others.  It all is relative to your experience and demand.  You may want to use your past hourly rate x2 to get a good feel for what you can charge.  Our companies' hourly rates are $95/hr and our people are 20+ year veterns of the controls industry.  Go to NY or CA and the rates go up.

Russell

Russell White, P.E.
Automation Technologies, Inc.
www.AutomationNC.com

Automation Training
www.PLCMentor.com

RE: Typical Contractor Electrical Engineering Rate

i'd say 3-5 times what your hourly rate as an employee is.

RE: Typical Contractor Electrical Engineering Rate

As a 1099 employee, everything that pertains to business is deductible.  Housing if 50 miles away from base, mileage or travel costs, meals up to the CONUS rates, insurance, publications, postage, phone, business equipment and etc.  This is why you go into business, the difference between the gross receipts and the expenses is what is taxed!

RE: Typical Contractor Electrical Engineering Rate

Is anyone willing to discuss the differential in rate for different length contracts?

 

Cheers

Greg Locock

SIG:Please see FAQ731-376: Eng-Tips.com Forum Policies for tips on how to make the best use of Eng-Tips.

RE: Typical Contractor Electrical Engineering Rate

(OP)
well if you gotta pay taxes then im ok with that. ive had folks pay me under the table for one to two week services before but this may be different. i think the biggest issue was trying to avoid affecting my unemployment payments.

RE: Typical Contractor Electrical Engineering Rate

Ahem.  If you work for pay while you're on unemployment, you have to report it, and accept that your unemployment will be adjusted accordingly.

 

Mike Halloran
Pembroke Pines, FL, USA

RE: Typical Contractor Electrical Engineering Rate

It is unfortunate that you are in a situation that requires unemployment.

That being said however, telling the taxpayers on this board that you're trying to screw the unemployment system probably isn't a good idea and you are not going to get very much respect, especially not from me.

RE: Typical Contractor Electrical Engineering Rate

(OP)
Alright sounds good. Speaking from personal experiences before and also having my latest employer suggest getting around an unemployment impact, seemed like a fair thing to ask. But I don't want to disrespect the system or other taxpayers by cheating it... Certainly will make a fair effort if one exists though... HR Block type stuff.

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