Which is better, Employee or Contractor ?

Is it better for a Programmer to work independently by Contract or as an Employee for a Corporation ?

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Judy StGermain
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Best to stay in full-time for Corp as you get great benefits, paid sick/holidays AND you can get free training to improve your IT skills and can transfer to different role if you get bored. Once you are let go - for whatever reason - than is the time to do contract work.

2y
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Johnny Sepulveda
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It depends on your preference. I'm in digital management and it seem 90% of the gigs out there are short-term contract. And I accept that. And I look at the flexibility and variety over the course of a year as a plus. Or I'd best get out of this industry because like programming, developing, etc, it's all moving toward short-term, non-permanent project-based gigs and we have to adjust. If you hold out for a perm/to-hire gig, you're going to miss out. I've worked for 4 major corporations in past 12 months. It's dizzying but it's the nature of the beast. Also, I prefer W2 over 1099 and most potential employers seem to as well.

2y
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I think it would be better to be a employee, of a Company, but that’s your choice. I wish you much success!!!

2y
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Jack Heath
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It depends on what you're looking for. If you're looking to get your name out there or prevent gaps in employment, contract jobs are great; but they don't offer a lot of stability nor do they help in terms of retirement.

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David Moreau
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I would side with employee. Stability and benefits win out over risk and riches.

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John Carrington
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Definitely you want to try to work independently by contract rather than being an employee because as an employee any ideas you have are automatically owned by the company whereas if you are independent you can patent and personally benefit from your ideas and any advances you may come up with unless you can't help it don't limit yourself to working for a large corporation that doesn't care about you you've got to look out for yourself

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Mohammed Basheer Basha
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Hello could you send me the employer vacancies.

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Bliss Miss
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You already answered your own question...

2y
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Carol Hogan
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That's a good question, as an employed worker as stated before there are benefits attached to that if you have a family then definitely employed workers for the benefits Medical, Dental, Eye Care, 401k. If you're single in a relatively good health then contracting-out is a great option. Another option is a mixture of both being an employee worker with all the benefits set hours. Then what you do in your personal time Contracting yourself out to do programming would be a great option. For example as a program where you can work for Geek Squad have set hours with all the benefits that come along with that type of position. Then on your days off or your off time your own personal time you can contract out to do programming of course if you go this route the company that you're working for may not want you Contracting with the competitor.

2y
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texxgadget .
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As a full time employee, you get a lot of benefits, probably a number that you wont use. They handle your witholding, etc. In some states they have to jump through a few hoops to get rid of you after a few months. It depends on the state. Unless you are fired for cause, you can get unemployment after.

As a contractor for an agency, you usually get no benefits. SOMETIMES, you can bamboozle them into health insurance, but its rare. The good side of it is that sometimes its easier to get on board as a contractor, and the agency pays the half the "FICA" like an employer does with employees. You usually get a little better rate since they arent giving you benefits, and they handle the witholding. As an agency contractor they can cut you on the spot. Unless you are fired for cause, you can get unemployment after.

If you go the 1099 route, YOU pay the ENTIRE FICA, so its twice the FICA you would normally pay, you have to figure out your own witholding and pay the IRS quarterly. You might still get some back at the end of the year but you need to make quarterly payments during the year or you get nasty fines. As a 1099, if you get insurance on your own you MIGHT be able to write off your insurance. (Check with your accountant) There are a number of other things you may be able to write off, but check with your accountant. As a 1099, I dont know if you can get unemployment or not.

If you have your own corporation, (your lawyer or some companies on the net can help you set one up for a few hundred) there are an amazing number of things you can write off. As a corporation, I dont think you can get unemployment unless your corporation sets up unemployment with the state. Also even if your corporation doesnt do anything, just sitting idle there is a fee to the state every year just for the corp to exist. In CA, even if it is an out of state corp, you are still subject to that fee if your corp does anything in the state. Example: A CA person creates an out of state corp to work under. Even if that person in CA doesnt do anything with their corp, (IE has it set up but isnt contracting with it) they are STILL hit with a $900 annual fee.

Do your HOMEWORK!

If you are careful, you can do some cool things with it. Write off you health insurance if the corp "Employs" YOU. If you want to drive a nice car to work, your corp can lease a car for you and write it off, but you can only use that car for work trips.

This is a conversation that should be held with a lawyer and not really here with us. If we give you bad advice, you might get stung bad, but Ive given you a clue whats going on.

Go find a lawyer and get it right for you and in your state.

2y
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