Independent Contractor Advice

[RamsFanCK]

Hi Ramily!

So here's the deal. I am a mechanic by trade. I've worked on aircraft and material handling equipment during my career. Times have been strange lately and I need new employment. I was recently interviewed and offered a well paying job as an employee of a company. Then the pandemic came and a little over a month went by with no physical offer.

Since then I have received a physical offer from the same company to work as an independent contractor for the same pay offered for employment. I've never been an independent contractor before and I've been doing a little reading on the topic. I understand that benefits and taxes would be something that I have to take care of. I would also not be protected by employment laws.

I want to make an educated decision on wether or not to take this job. Any independent contractors on the board? How does time off work? What questions should I ask the employer (customer?) before I sign? if I work at one location for set hours am I really an independent contractor or is this company trying to save money in a shady way? Advice? Tips? Opinions? I'll take it all.

Thanks!

 

[CGI_Ram]

@RhodyRams might have some ideas.

 

[Neil039]

I am a IC. Here's my take, not that I have answers for you.

It really depends on a couple of factors.
1). The state employment laws where you reside: Is it an at will state? Do you plan to pay taxes quarterly( state, fed, FICA, unemployment). This could help if you're let go and have a bearing on your taxes.
2). If the offer ( compensation) is the same as you once received but as a contracted employee then it truly isn't due to benefits and unemployment for release.
3). Are you insuring family members? If so that will absolutely destroy your income potential IMO.
4). Do you need this job? Hiring you as an independent contractor relinquishes the employee for truly taking care of you and valuing your employment. It's very different if you are not solely reliant on this one employer. That is my case. I own a Irrigation company and my value is based off my client list, not just one. So it gives me latitude on who I chose to work with.
5). I'd suggest reading up on IC success with the company and your state. This would give you a true gage as to if it's even worth considering.

Good luck and I hope you're able to make the best decision for you and yours.

 

[RhodyRams]

I wouldn't consider myself as an independent contractor in the sense of this conversation.

But, it seems like @Neil039 gets a perfect 10 on his post with the info he provided

 

[RamsFanCK]

I am a IC. Here's my take, not that I have answers for you.

It really depends on a couple of factors.
1). The state employment laws where you reside: Is it an at will state? Do you plan to pay taxes quarterly( state, fed, FICA, unemployment). This could help if you're let go and have a bearing on your taxes.
2). If the offer ( compensation) is the same as you once received but as a contracted employee then it truly isn't due to benefits and unemployment for release.
3). Are you insuring family members? If so that will absolutely destroy your income potential IMO.
4). Do you need this job? Hiring you as an independent contractor relinquishes the employee for truly taking care of you and valuing your employment. It's very different if you are not solely reliant on this one employer. That is my case. I own a Irrigation company and my value is based off my client list, not just one. So it gives me latitude on who I chose to work with.
5). I'd suggest reading up on IC success with the company and your state. This would give you a true gage as to if it's even worth considering.

Good luck and I hope you're able to make the best decision for you and yours.

Great input my man! Thank you! There is a lot to consider thats for sure.

I wouldn't consider myself as an independent contractor in the sense of this conversation.

But, it seems like @Neil039 gets a perfect 10 on his post with the info he provided

Appreciate you anyway brother