If you are working at home and despise the morning time (against what science says should be your peak productivity period), then you can wake up at noon and work until midnight! You are free to find the routine that suits your personal productivity cycle, without anyone to answer to. The contract-to-hire model gives you a massive hiring advantage over your competition. However, they may want the stability of a full-time (or even part-time) position with your company. U.S. lawmakers haven’t created many distinctions between full- and part-time workers (hence, my use of “full-time” throughout this article).

We can also provide you with the tools you’ll need to successfully ensure you’re paid what you’re worth once you transition to full-time work. W-2 employers cover much of your tax burden before you get paid, so you may not even be aware that they’re covering such a big cost. The tax burden is often a big shock for folks who decide to go independent as a freelancer or contractor. Experts anticipate the U.S. workforce will be 40% contract workers and freelancers by 2020.

You felt like you left money on the table when you changed jobs in the past. You never have to feel that way again.

An example might be a programmer who is brought on to help a company complete their web application. Upon completion of the work, and acceptance of that work by the company, the contract may extend to other related services or it will end and the contractor will need to find other work. The contractor is not an employee of the company, may contract vs full time salary support other clients at the same time, and often is an owner/operator of their own independent business. A contract position typically has a defined project, scope of work, or timeline that both parties, employer and contractor, agree to. However, contract work isn’t always the most consistent in terms of when you’ll have a paying job.

So, while contractors are required to obtain all of these – out of their pocket – company employees will either have them at their disposal or will need to file a request to obtain them. Many companies offer paid time off, healthcare, insurance, retirement plans, and similar perks. Thanks to this commodity, contractors can easily plan and organize time off or vacations and holidays by accepting more work prior to ensure that they’ll be able to handle them financially. I’m not saying it’s bad or not to go for it – but realize that this is a trial period for both you and the company and it’s really good to know as much as you can about this transition point.

The Power of Positive Thinking in Your Job Search

Before signing on a new contract worker, make sure all parties are on the same page. From prescriptions to dental care, you’ll be operating without any benefits or advantages that come with working full-time for a company. Covering the costs takes some planning and a healthy safety net – you need to make sure you’re always saving up for a rainy day. Will there be networking opportunities through the contract job that could lead to a full-time position? If so, a contract position could open a lot of doors your current full-time job might not.

Employees, who usually have most of those things provided by the employer, don’t get the same tax breaks. This post sets out to explain what a few of those differences are, in order to help both job seekers and employers determine which path to take. It’s tough for candidates to decide whether leaving a full-time job for a contract position is right for them. And, candidates might think contract work is only for low-paying, entry-level positions. A contract position fills holes in a client’s workforce, and is an increasingly popular element of staffing management plans for employers.

Full-Time Employment

Full-time employees most commonly work as a part of a team, which enables them to relate to other employees, build quality work relationships and get in touch with other professionals from similar fields. It’s quite common that they will just push a contract at you and ask you to sign and go along with what they have. Any smart employer will do this, as negotiations mean more time focusing on people they already have.

One of the biggest differences between independent contractors and full-time W2 employees is who pays for all the supplies. For the W2 employee, the business either directly pays for or reimburses the employee for all supplies needed to complete the job efficiently. Because, in reality, the hourly or flat-fee rate that you pay for an independent contractor will most likely be higher than you’d pay an employee to perform the same services.