Job offer come New Year's

Go full time or get better contract

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3 Replies - 1957 Views - Last Post: 23 December 2010 - 03:33 PM

#1 Craig328  Icon User is offline

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Job offer come New Year's

Posted 23 December 2010 - 11:44 AM

So, I've run into a pleasant situation today and would like to hear some opinions. Here's the situation: I'm currently working as a 1099 subcontractor for a very nice small company. I go through a staffing/recruiting firm that tacks on something like $15-$20/hr to my rate. Earlier today the staffers call me saying the client would like to hire me full time. This would make Mrs. Me very happy as she has this impression that full time work is more stable than 1099 work. We close here in around 30 minutes for the holidays and I won't be back in the office (I'll be working remotely next week) until after New Year's. I tell the recruiter guy this and say "tell them we can discuss this after I'm back in the office".

Anyway, long story hopefully shorter, the client (one of the owners) comes down the hall about an hour later and says they do indeed want to either hire me on full time or go to a direct contract (basically, cut out the recruiter). He told me they'd rather pay me the money directly and have me get all of what they pay the recruiter now. This means a roughly $10-$15/hr pay bump (because I won't be a dick and ask for all of the difference...I'm just like that).

So here is my pleasant dilemma: come New Year's we're going to sit down and I need to decide whether I'd rather be a FT employee with benefits but making less take home OR being a direct 1099 without benes (I'd need to pay for them myself) but making bigger bank. The wife has a part time job that we've been getting mediocre medical coverage through but that ends in March so my 1099 option would require me to buy my own health coverage and such. I've looked at medical/dental policies online and I can expect to pay around $400-$500/mo for the family. Naturally, the pay increase itself takes care of that. Taxes are a different matter though. As of right now, I look to owe the IRS somewhat over $10K in income and self-employment taxes. I do have my own corp that I'll be able to write off a fair amount of stuff against so it may not turn out to be that bad.

I'm asking for insights into the things to consider for such a decision. I very much like working for these folks and they very much want to have me there. It's a great match and I'd like to be there. TBH, I don't have a solid idea of what their FT offer would be so I can't really discuss hard numbers. I do recall a number was mentioned when I started back in May but if they bump the 1099 pay up the difference between that FT salary number and the 1099 revenue would be around $30K year. It SEEMS like I'd do better financially staying on as 1099 and the owner and I briefly discussed it and he said he's good either way.

So...anyone have any good idea what it costs to provide yourself with your own benes these days? :)

This post has been edited by Craig328: 23 December 2010 - 11:45 AM


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Replies To: Job offer come New Year's

#2 tlhIn`toq  Icon User is online

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Re: Job offer come New Year's

Posted 23 December 2010 - 12:04 PM

Your month to month pay is for a job.
Employees have careers.

1099 might get you more pay this coming year. But is there a long term future as a career, complete with retirement packages and PROMOTIONS. As a 1099 you'll be the worker your entire life. But if you can transition into higher positions of authority you will still get the higher pay AND some control over the projects.

Employees get things like on-going educational reimbursements. You get sent to training seminars & workshops instead of paying for them out of pocket. Staffed management get the perks.

A high paid grunt is still a grunt.
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#3 macosxnerd101  Icon User is online

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Re: Job offer come New Year's

Posted 23 December 2010 - 02:03 PM

My dad owns a small business. Health care is the highest cost for him, save only for employment, and goes up 30% a year. That's with having 10 or so employees and their families on the plan. If you go on your own, can you really afford that kind of an increase each year? With the employer, they may possibly pay some or all of the insurance cost.
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#4 hookiethe1  Icon User is offline

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Re: Job offer come New Year's

Posted 23 December 2010 - 03:33 PM

You might want to take a second look at that health care coverage. Not sure what you get for 4-500/month for a family, but I'm pretty sure it's not much. Good insurance is worth every penny in my experience (mainly because my wife blew her appendix 3 weeks to the day after our daughter was born, we racked up over 60k in medical bills that year and ended up paying about 3).
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