Which would you prefer - Being an Employee, or an Independent Contractor, and why?

[msc545]

I personally prefer being a contractor, as I make more money, am controlled much less, and because of my profession don't have people who don't understand what I do telling me what to do.

[slatyb]

Practically? In the US the best medical insurance is provided by employers. My way no one would pay me the $250/hour it would take to make me leave my job.

In tech, contracting is mostly attractive only to experts that can charge $2000/day, and are in high demand. by the way, if you are on salary at say $100,000 a comparable hourly rate would be $100/hour.

[msc545]

Actually, I think an hourly rate of $50 equates to $100,000 per year, no?

[slatyb]

Not even close. No one on salary works 2000 hours. With vacation and holidays it’s more like 1880 or less. I get 26 days paid time off, 3 sick days, and 6 holidays, which comes out to about 1800 hours. I also get medical benefits for me and my wife worth about $20,000/year, and my employment is fairly secure. Medical benefits for contractors are not nearly as generous, and there is no job security. You can be terminated on a whim. So divide your annual salary by 1000 to get a minimum hourly rate. Any recruiter who tells you that $50/hour is the equivalent of a $100,000 salaried position is a con artist. Occasionally I get email from recruiters looking for someone to do contract work. I tell them my contract rate would be $200/hour.

[msc545]

I guess if you calculate it that way, it makes sense. I make 250-400 / hr, no benefits, no job security at all.

[DaveToo]

I've been both. There are advantages and disadvantages to both.

[msc545]

Would you like to expand on the advantages and disadvantages of both options?

[DaveToo]

As an employee, you are compensated at the whim of the company. But you normally have some form of health insurance, either fully or even partially covered. There are corporate benefits available you might not have as a private contractor.

As a private contractor, you are limited in your income by how much you work. The downside is, you have to get yourself bonded, get health insurance, and insurance on your corporation or simple business.

[DaveToo]

Thanks for the MHO!

[On_cloud_wine]

Independent contractor or small business owner for sure. Nothing corporate. Especially in a small town with less competitors

[On_cloud_wine]

I should have been a mechanic. I’m honest and fair and if fire anyone who does drugs.

[MzAsh]

Being self employed. But independent contractor. Then employee.

[Drumlin2001]

I like the idea of being self employed, but I've been lucky to work for an employer with pretty good benefits, albeit not the best pay. I have job security which a lot of people don't have, and with 2 kids now that's important to me.

[DryGermanGuy]

Being a B2B contractor, for the exact same reasons you listed. Now if only this whole Covid drama could end, so that we can return to a regular business?

[FinalFantasyBro]

I actually want to eventually become self employed, you pretty much explained it perfectly more money, less annoying bosses and you generally have a bigger control of your own schedule.

[exitseven]

I recently worked 3 part time jobs. I have health insurance paid for already so I made more money and the variety was nice.

[mobiusforniner]

Employee, because the pay is secure and predictable.

[UsernameXLTX]

They both have their advantages and disadvantages. I'll go with private contractor for the freedom.

[OddBeMe]

Being independent gives you control over your time.

[Iron_Man]

I am an independent contractor

[Jamie05rhs]

I'm neutral.