Contract Employment Salary
Contract Employment Salary
(OP)
Hi,
All my previous employment were salaried positions. However, I am currently unemployed and considering contract employment opportunities. From what I understand, contract employment generally pays more than a regular salary position because of less benefits. What is the rule of thumb for how much contract employment pays in comparison to a salary position?
Any advice is much appreciated. Thank you.
All my previous employment were salaried positions. However, I am currently unemployed and considering contract employment opportunities. From what I understand, contract employment generally pays more than a regular salary position because of less benefits. What is the rule of thumb for how much contract employment pays in comparison to a salary position?
Any advice is much appreciated. Thank you.





RE: Contract Employment Salary
RE: Contract Employment Salary
It depends what you are doing where you are, and how good you are, and how much they need you.
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: Contract Employment Salary
I'm with a start-up that builds a hot selling product (can't name the product or company yet) and paid 87% more (contract) of my last company.
It really depends on location, company, etc.
Hiring as contract is becoming the norm these days.
Chris
SolidWorks 09 SP4.1
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SolidWorks Legion
RE: Contract Employment Salary
RE: Contract Employment Salary
RE: Contract Employment Salary
I am not saying I have never done it, but in reality these people work as full time employees not contractors, paying them as such is keeping Uncle Sammy from money (payroll taxes) he wants and I will bet -he will figure out a way to get.
I am just waiting for some mid level accountant at a large company to use the whistle blower law and cause a big ole clusterf**k.
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RE: Contract Employment Salary
TTFN
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RE: Contract Employment Salary
I contract through my limited company (i'm the sole employee / director) and charge out my time at 3x what i used to earn as a permanent employee.
My company then pays me a wage...but my boss is a mean ba**ard
Regards, HM
No more things should be presumed to exist than are absolutely necessary - William of Occam
RE: Contract Employment Salary
Keep a couple side jobs, don't work full weeks at your main gig, and you're golden in the eyes of CRA. But you'll be a lucky sod indeed if you're a sole proprietor getting an overhead rate of 2-3x salary AND you get to work weeks or months on end in a client's facility. Most employers won't put up with that. You get paid like that, you get paid only for the hours you're actually needed.
It may shock you to know that in Canada, the country Rush Limbaugh likes to refer to as "the socialist republic of Canuckistan", we have the lowest payroll taxes of any G7 nation. Way lower than in the US. That gives us higher income taxes, of course, but less disincentive to hire.
Note that what I'm talking about is the actual taxes (employer-paid portion of government benefits, mostly) that a business has to pay on behalf of each employee, not the portion of income tax that an employer is required to withold. Don't worry, if you're a pure contractor sole proprietorship, you'll be paying your income tax in installments- CRA still gets their pound of flesh, even if they can't deduct it directly from every invoice you submit directly.
RE: Contract Employment Salary
If you have enough experience I recommend you go contracting unless you are not willing to relocate and/or have a family to support which requires job security plus all the benefits your family needs.
RE: Contract Employment Salary
Here in sunny SB we had a hell of a time dealing with contractors. I think we got rid of most and turned one of the remaining into some kind of temporary/part time worker or something. (I previously posted about this).
What is Engineering anyway: FAQ1088-1484: In layman terms, what is "engineering"?