Started working as a contractor this Sep,2012.
Please share your experience to a newie contractor.
My career path.
Working as a contractor this Sep
Worked as Unix admin at the public sector in Aus for almost 4 years
Worked as Unix/DBA/Programmoer in Korea(not North) for 10 years
My current company is sixth company in my life.
Cheers,
My interpretation of your post is that you are working approximately 40 hours a week for a single client, but don't have any of the perks of being a full time employee.
Since your employment can terminate without notice, you need to do the following.
One put 6 months living expenses in the bank. Remember that the extra money that you get weekly has to also cover benefits that an employee gets and are hidden.
Two, start finding a second client that requires only 4 to 10 hours per week. In the long term, you need to set your hourly rate at approximately two and half times what you think a reasonable salary would be.
Three, check the income tax act and sales tax acts to see what requirements, obligations and allowances you may have/incur.
Four, consider developing a product, its the only way you can leverage your hours.
.
If you are working as a full time employee for a company that classifies you as a contractor (as I am currently doing yourself) you are basically getting screwed by your boss. The government HATES you because you are not conforming, it will express this by punishing you.
Unemployement tax: for regular employees its 50% paid by you, 50% paid by boss... (well, 50-50 of the fees, the actual benefits are paid mostly by general taxes not collected fees in checks).
As a contractor you pay 100% of that very same fee yourself and are INELIGIBLE to receive ANY benefits at all.
Medicare/medicaid: Those also go from 50-50 split to 100% you, but at least you are eligible.
Healthcare: if you work over 30 hours a week obamacare classifies you as full time employee and boss has to provide healthcare plan drafted by the government or pay a fee/fine which is used to help fund it, they will pay the fee because it is cheaper.
If you are a contractor you have to buy it yourself or pay a fee, and buying it yourself is going to be much more expensive than for a company to negotiate a group deal... unless you are very young and healthy. (with 14 years experience I am thinking you are too old for that).
IIRC there are a few other ways in which you get the shaft too...
But, unfortunately a person has to eat and contractor job is better then no job at all.
Most of my career, over 95%, was as a self-employed person.
The formula is quite simple:
I also have a lot of experience on the other side of the equation, hiring contractors. I can tell you, for a fact, it is nearly impossible to find honest technical contractors who don't lie and fake their resume and references. In some countries, it is almost like resume cheating is the subculture norm.
I've even tried hiring "by the job" to do simple tasks like program some small code in PHP or HTML; and it is nearly impossible to get someone who can do a 1 hour job in less than three days or even weeks, LOL.
I've read so many "super duper" resumes, experts in this and that; but when I ask to just demonstrate some simple coding skills, the candidate falls apart with excuse after excuse.
So, to be a great contractor and make money is easy; if you are honest, skillful and all the things mentioned above.
Too many people are looking for shortcuts, they will lie and cheat and fake their skills on their resume and they struggle all their career. The people who just do the work, learn the skills, become experts, real experts, not fake ones; find that contracting is very easy (and rewarding!) and the money will flow and you will have a good life.
It's easy... their are no shortcuts, only hard work, honesty and integrity.
Without honor, all is lost.
Hiring by the job is actual contractor work, you contract out single / individual jobs.
I have done that on the side for a while.
Its the company which employees you full time for a couple of years yet insists to pay you as a contractor which I was referring to earlier.
Yes