US - MN - Minneapolis - Contract Job - QA Analyst 
Author Message
 US - MN - Minneapolis - Contract Job - QA Analyst

User acceptance testing analyst for financial software product. Need SQA
Team Test skills, well rounded quality assurance background in
client/server environment.  Exposure to Oracle, PowerBuilder, GUI screen
development preferred. 4 month W-2 hourly contract.
--
Pat O'Donnell
Hayden & Assoc., Inc.  (IS Recruiting)
ph:612.941.6300
fx: 612.941.9602



Mon, 22 May 2000 03:00:00 GMT  
 US - MN - Minneapolis - Contract Job - QA Analyst

There is no such thing as a W-2 contract.  There are contracts and there
are short term jobs where you pay 20% more tax than you would if you
were an independent contractor.  Call it an assignment, call it an
engagement, but don't call it a contract!



Sat, 27 May 2000 03:00:00 GMT  
 US - MN - Minneapolis - Contract Job - QA Analyst



Quote:

> huh? pay 20% more?

> >There is no such thing as a W-2 contract.  There are contracts and there
> >are short term jobs where you pay 20% more tax than you would if you
> >were an independent contractor.  Call it an assignment, call it an
> >engagement, but don't call it a contract!

OK, being that my wife has been giving me heavy encouragement to go the W-2
route (knowing how much I *dearly love* paperwork, and therefore afraid
I'll do the work and never get around to billing...), please explain why
I'll pay 20% more tax as a W-2.  I am not challenging you, I really need to
know, as my current full-time employer has offerred a reasonable rate (for
this area) under a traditional contract if I turn independent, and I am
still considering leaving for the same rate at another place as a W-2.
Yes, I know that sounds stupid, but my current employer wants a full year
minimum at $55/hr, and these other guys are talking only a 3-6 month
commitment on my part.  Given the current rate structure....

I need some serious advice.  What can you tell me.  Please feel free, by
e-mail or to the group (depending on whether you think others would be
interested).  My apologies, BTW, for being somewhat off topic in the
COMP.LANG.COBOL group, but it seems much of what goes on in this group
lately *is* about employment issues, and as a COBOL kind of guy, I value
the advice of other COBOL people.  You know better where I am coming from.



Fri, 02 Jun 2000 03:00:00 GMT  
 US - MN - Minneapolis - Contract Job - QA Analyst

Quote:



> > huh? pay 20% more?

> > >There is no such thing as a W-2 contract.  There are contracts and there
> > >are short term jobs where you pay 20% more tax than you would if you
> > >were an independent contractor.  Call it an assignment, call it an
> > >engagement, but don't call it a contract!

A W-2 contract is usuallyh referred to as a 'project hire'. I.E. you are
not hired as an 'employee' but only for a specific contract.  They pay
half of the FICA and medicare.  Usually withou any bennies, vacation or
sick leave.  But you get paid for all ours worked.

Quote:

> OK, being that my wife has been giving me heavy encouragement to go the W-2
> route (knowing how much I *dearly love* paperwork, and therefore afraid
> I'll do the work and never get around to billing...), please explain why
> I'll pay 20% more tax as a W-2.  I am not challenging you, I really need to
> know, as my current full-time employer has offerred a reasonable rate (for
> this area) under a traditional contract if I turn independent, and I am
> still considering leaving for the same rate at another place as a W-2.
> Yes, I know that sounds stupid, but my current employer wants a full year
> minimum at $55/hr, and these other guys are talking only a 3-6 month
> commitment on my part.  Given the current rate structure....

> I need some serious advice.

If you are being offered the same rate to go independent (no
withholding, you pay all taxes including approx. 15% fica), or
to gow W2 (the withhold taxes and pay half of FICA)  That makes the
W2 rate approx. 7.5% higher than the 1099 rate.

Under 1099, there are things you can deduct that you cannot as an
employee.  If you incorporate as a Sub-S or even an LLC, there are more
things that can be deducted.

If you are W2 you are limited to an IRA and/or your employere's 401K, if
eligible.  If self or Sub-2 you can put up to 25% (25K max) of pre-tax
into a retirement account.

I am not a lawyer, an accountant, or a financial expert, so take htis
for what it is worth.  After all, free advice is worth waht you pay for
it. ;-)
Jim K.
--
.*------------------------------------------------------------*
 | "People should have two virtues:                           |
 |  purpose- the courage to envisage and pursue valued goals  |
 |           uninhibited by the defeat of infantile fantasies |
 |           by guilt and the failing fear punishment;        |
 |  wisdom-  a detached concern with life itself, in the face |
 |           of death itself."                                |
 |                                         Norman F. Dixon    |
 *------------------------------------------------------------*



Fri, 02 Jun 2000 03:00:00 GMT  
 
 [ 4 post ] 

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