new job opp..few things to consider

ColTim32

So, I hate my current job.  I hated it before the baby and being back has confirmed that I need to do something about the situation and find a different career path.

So, I've come across an opportunity that I think could be something great, but I would initially take pay cut and I'd be taking a little bit of a risk.  I'd be working at home part time and have so much more flexibility. I met with a woman today who own's a small successful company and she's looking for help. I could work from home or remotely most of the time and would also have the opportunity to get out and meet clients, etc at times too. She doesn't want to hire someone on full-time and have to pay benefits, etc. She has given me the option to be hired on as her PT employee and she'd put me on payroll, deduct taxes, etc. or she said she could hire me on as a permanent contractor where she could pay me a little more, but I'd obviously have to take care of my own taxes. She also mentioned I could write off some of my "home office" expenses, which would help too.  So, for those of you who have done contracting work, or own your own business, how exactly does this work?  Which option would be best or would it make much of a difference either way?

Sorry for the long post and thanks for any advice!

jhenry1204

I don't know much about it, but before the fire of the shop, DH's old employer had him as a contractor not as a full time employee.  I remember talking to DH about this, and he said that doing it this way he was making much more money.  If his boss had hired him, he would only pay him an hourly wage instead of per unit wage (DH did fabrication and installation for stereos/car starters/electrical things in cars).  It was like a $300 a week difference, minimum.

Taxes - Please remember one thing : PAY THEM QUARTERLY.  DH forgot that he didn't pay his last quarter taxes after the fire (the shop burnt to the ground, we are still fighting his boss over it).  A year later we got a letter from the IRS.  We got everything figured out and were able to pay them, but it was a pain.  Especially because he'd only worked about a month for that quarter, hence the reason he forgot about it.

Depending on what you are doing, make sure you get insurance.  Even if the other woman has it, get your own just to save yourself if something happens.

GET EVERYTHING IN WRITTING.  I cannot express this enough.  DH and I are battling his old boss because he was a really good friend and he turned on us after the fire.  Needless to say, DH got nothing in writing so it's making the whole court thing that much more difficult.

Also do as much research as you can.  About the company you're going to be contracting for, about taxes (even hire an accountant), insurance, what ever you are able to find out.  The more you know the better.

ColTim32

Thanks! Those are all good points!

LCTL05

I was a contractor/consultant for a year.  They should pay you significantly more, because of the tax bracket it will put you into.  You should talk with an accountant to figure out what precentage you should hold back for taxes, and yes, pay them quarterly.  If you have your insurance through your dh, you're fine, if not, you'll need to get private insurance.  You just don't want to be in a position without insurance.  You can get decent private insurance - but beware, it is more expensive.  I got mine through my State Farm agent. 

Like pp said, get a contract in writing.  I'd also recommend having it notaraized, so make it more legit.  Hope this helps.