What would you choose - A) a Contract role at $150/hr or B) Full time role at $160k per year+Bonus&benefits

like
Posting as :
works at
You are currently posting as works at

150/hr = $300k at only 40 hrs / week plus potential for OT? All else equal, do that

like

C2C is much more lucrative even with having to pay ER medicare and the costs of running an LLC. MUCH more lucrative. That's what happens when you cut out the middle man.

Contracts because I hate being permanent

like

I would take the Full time, benefits can add up , secondly you have more job security

like

Also factor in vacations as well

likeuplifting

Need a lot more detail on bonus and benefits.

Eg. If bonus is 25% and 5% 401K match you’re then at $208K. Also, as a contractor, you pay more self-employment taxes, so that would be ~$13K in more taxes ... but then you can deduct more expenses.

Also as a salaried employee you tend to have more stable employment and can actually take PTO whereas contract role no work = no pay. Though you can also bill more than 40/hr week at times.

A lot of puts and takes that may be good to model out.

like

Several questions about the contract work. W2 or 1099? Short term or 12+ months? Through a contracting firm or solo?

If solo and you are on the hook for benefits and taxes, the general rule of thumb is that your bill rate should be around 2.5-3x what you want to net. 1/3 for taxes, 1/3 for benefits and overhead, and 1/3 for you.

As a contractor, you generally don't get holidays or PTO, so anything you take is unbillable time. Say you want to take 3 weeks of PTO and 10 federal holidays, that's 5 weeks of unbillable time, bringing your total billable time down to 1880 hours, assuming no OT. If you're looking at making contracting a career, or at least more than just this one contract, you'll need to budget time for business development. Let's say that brings you down to 1600 billable hours.

At 1600 hours, you're now grossing $240k for the year. Asssuming you're paying $1000/month total for health/dental/vision insurance, you're down to $228k.

How does $228k compare to your total comp including benefits from the $160k FTE role? If the FTE role comes with a 15% bonus and 5% 401k match, that puts you at $192k prior to accounting for benefits. That's not a big gap, and benefits could easily put you over the top as a FTE.

likehelpful

@C1: Have you done contracting before? I have, and unless at least some BD is done during work hours, it's a quick way to make yourself absolutely miserable by having BD take up all your non-work hours.

What do you do if a prospective client wants to interview you during work hours? Or wants you to fly cross country to interview for a contract role? Or there's a quick turn proposal that you can't get done just doing night and weekend BD work? And so on.

BD is a significant time eater in consulting and unless you're only staying with one client with cakewalk follow-on work/contract extensions, it's not something you can half-ass in your free time. I contracted for a while several years ago and think I spent about ~300 non-billable hours on it during work hours, plus the time I did outside of work hours. Proposals and interviews eat up a large chunk of time.

like

If contracts has potential for more than 6months of guaranteed work, then contract.

like

B. Insurance is cost effective if you have a family with kids.

If the contract is 40 hours / week for over 6 months, then that.
I bill $150-$250 / hour but it’s tough being 100% utilized in a week. The goal is closer to 60% since I need to focus on internal work and sales the rest of the time.
To me, the flexibility is worth a lot. If you’re married, have kids, sick parents, the stability of a salary may be better.

As someone who has done both, I would chose B hands down. As others have said self employment taxes and insurance will eat up a chunk. But what I had issues with was getting paid on a regular schedule. Did not receive my first payment for 60 days and normal TAT was about 45 days. So make sure you have plenty to pay the bills in savings because they keep coming.

1099 or W2 is the biggest question

Related Posts

Need referral in IBM.IBM" class="linkified" target="_blank" rel="nofollow" >IBM.IBM

like

Waiting for an offer from A&M. Someone of you know the percentage of collections you get for Associate role vs Senior Associate role? What is also the % of bonus you get from sales?

like

Hey
Any one knows what's the salary scale for a Business Development Manager at Dish Network?

like

I am planning to switch to PWC from Deloitte for a machine learning engineer role (I know it will be a mix of data engineering and data science and not skewed to the right)

Is it worth the jump?

🌟JULY JOB THREAD! Do you know of an opening or opportunity? Drop it below! Help another Fish.🌟

like

What is the minimum grade and salary for USA/CANADA Onsite from TCS?

like

How much WIPRO pays to B3 band on H1B for tech lead in US onsite for city Minneapolis.

like
like

Anyone know what the average wage for working in a bar/ restaurant in Dubai is I’m thinking of taking an offer to work there but I’m not sure what I should be looking for salary wise

Milestone inc (milestone internet) gave me 18 LPA + 2 Variable and WFH. Is it good company? Any review

like

Need some honest advice. So I’ve been at the firm for a little 7 months this is my first job after college and I absolutely hate it. I have two degrees in tech and business. Currently I am doing auditing and it’s just not for me. Am I crazy for quitting current role and looking another job? Or do I stick out a couple months for 1 year mark then leave ?

like

Currently a C at Deloitte (3.5 years since graduated UG) in my promotion year to SC. Being reached out to for project manager role at slalom. Would this be a good step up? Or stay put?

like

I was promoted early this year from an assistant “hourly” role to a managerial “salary excempt” role, but my old job hasn’t been replaced and it’s been 5 months. It’s an unfair workload and assisting someone else takes up so much time that I can’t learn and develop in the managerial role. And I find myself constantly working overtime and not getting paid fairly, even with the pay raise I got when I was promoted. I want to send my employer an email saying they’re in violation of FLSA.

like

EY-P 🐠, I’m looking to interview for an SD role doing M&A IT at EY-P. Would anyone be willing to share their interview experience with me.

like

Question of the day: would you still refer people to your firm if referral bonus was $0?

like
like

The weirdest thing happen today. I was asked to take a math assessment for a HR Generalist position. Not sure how the two are related. Has this happened to anyone before ?

like

Currently looking for an outside sales position in Massachusetts.

I have 7 years experience in sales. But I am relocating from North Carolina to Massachusetts.

Would anyone happen to know any great companies hiring?

A majority of my experience is in the logistics and logistics technology side of sales. I’ve been working remotely doing over the phone/ zoom demo sales. But I would love the opportunity to service my clients in person!

like

Hi, what is a standard compensation package for Corporate & Investment Banking Associate Coverage Group/ Relationship Management in New York City? Also, do you recommend such group in IB, is it a good move from consulting?
Thank you

like

CGI Can I please request for a referral? I'm applying for an Industrial Placement at CGI and would love to get the opportunity to gain some real world work experience. Thank you!

like

More Posts

Hello Fishes
Got an offer from Deloitte as senior, audit private for 76k Toronto.. Is it Senior 1 or 2..
Do I accept the offer
Thanks in advance

like

And go to sleep it’s Monday tomorrow 🥹

Post Photo
funnylikesmart

At 120k in data analytics with 3.5 years of exp. Whats the likelihood i can get to 200k in 5 more years if i continue on this path?

like

Talking about going with my two best friends on a wine trip to California for a 40th birthday celebration. Any suggestions where to go? Where to stay? Things to do? Obviously drink wine 😉

like

what is the salary range for C4 band in Mindtree?

Book recommendations for new executives?

like

Hello! I’m providing referrals for my organization. Latino Network is in Portland, OR and provides services to the Latino community. Benefits, work-life balance & work environment are AMAZING. 15 days off per year + paid self care days in summer (14 days), fully paid insurance, 401k with match, wellness stipends, access to Nike/Adidas employee store, free Trailblazers tickets + other sports teams and concerts, and many more benefits. Happy to chat with anyone about my experience.

Big 4 folks- what is the pension actually worth? Does it become a meaningful part of your retirement if you spend a career here and wind up at, say, SM?

like

Anyone know any good book recommendations that help improve your financial analysis skills?

like

Good time to get in on ICP?

like

Looking for a short term sublet - flexible on location. Any looking looking for a sub letter?

like

Hi Fishes from Target India,
Looking for a referral as a Software Engineer.
Exp: 4 Years.
Current Company: Oracle
Skill: Java Spring boot Microservice DS algo.

Any one from Target India kindly help me by giving referral?

like

NEED a good salon in downtown nyc.

I have super thick Sicilian hair and need it cut, layered, etc. I will pay anything for a good and reliable stylist.

Eventually I want to get it balayaged again - I’m blonde if that’s important.

Thank you in advance!! Please post avg cost if you can. 💕

like

What agencies are allowing for remote staff producers?

like

Took my first vacation (1 week) in over a year to visit family. Was bombarded by emails from one partner asking me to complete non-time sensitive motions, which he hasn’t even bothered to review. This is my third firm in three years (first I left as I was severely underpaid, second I left for a 100k increase in salary), but this lack of respect for my boundaries has made me want to move again once I’ve completed 18 mos. Bad? They don’t do this to the other associates (all male).

like

How do you approach a negotiation when you were told the salary cap at the beginning of the interview process?

Is there ever a fair reason to revisit that number?

like

Have a 115,000 point AmEx Platinum referral offer. Let me know if you’re interested

Post Photo
like

Additional Posts in Compensation

Anyone know how much product managers at Spotify make (NY)? Various websites give differing answers, can't identify a consensus.

like

Current: 100k Federal Consulting
Offer 1: 125k / 5k signing (commercial) KPMG
Offer 2: 130 (commercial) EY
HCOL
What do you guys think?

like
like

Is there a performance/rating scale at Alvarez and Marsal at year end?

like

Hello 🐠,
Any idea how much a Senior SAP Technical Architect (over 10 YOE) makes? I know it depends by city & company but was curious what the range is. Thanks in advance!

like

Anyone have any idea what bonus (%) usually looks like for a first year C?

like

Associate at McK; made ~$220K cash TC (maybe 260k or so in 22).

Curious what roles in FAANG will allow me to maintain comp and work chill hours?

I have a STEM undergrad and 5 years of non consulting work experience. Very good at numbers, strong communication skills, decent at coding (but I don’t want to be a SWE or DS).

like

What is the entry level salary for Deloitte Advisory in tier 1 city? Tier 2?

like

Deloitte 🐠 what’s the salary range for senior manager in healthcare with consulting experience from a non-big four with a masters degree... Chicago

like

I went from 2 Federal Deductions in my paycheck a month ago to 0 Federal Deductions now and I’m not sure why. My take home salary went up... how is this all of the sudden the case?! Will I have to pay more in taxes later as a result of this change?

like

What is the salary range for AP at ZS? How long does it take to become a partner?

like

Anyone know the salary band for Senior Consultants @ Capco in Dallas?

like

What’s the highest sign on bonus amount you’ve seen from Accenture recently at the Consultant level?

like

UK consultant with 8 years experience and top 10% performance reviews for several years now. Got a pay cut last year having fallen out with head of department. Am I being treated unfairly?

like

I have 7 years of exp (4 consulting) and make ~100 as a senior. I’ve been interviewing with Big4s for a lateral move.

What’s the lowest bump you’d consider leaving for?

like

What does chief of staff do? Is this a similar role to a senior consultant? And how much they make?

likefunny

Anyone recently joined Metlife? Any input on pay for senior auditor would be great help

like

Anyone have any insight on salary for a Sr. project Manager w/ Masters & PMP , 10 YOE in Financial industry can get at Citi or Discover? I have interviews with both coming up and not sure the most I can get. Located in Florida

like

I’m currently a Manager with 8 YOE, half of it in a mid-tier consulting firm and the other in a Big 4. Starting to look for an exit to industry and aiming for 220-250K base. Currently at $170K base and specializing in cyber security - is this too aggressive a target and if so, what should be my target for base + anything else (with the split)?

likehelpful

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal