Would you leave a salary job for a contract job that’s contract to hire? Would it be smart to negotiate higher pay using the contract job as leverage? The contract job is about $30 more per hour.

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Contract jobs seem to be higher because you don’t get benefits. If your job isn’t toxic and fits in your long term plan, I see no reason why you’d leave a salaried job to a contract job. Check your numbers appropriately before making this decision.

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ITPM1 - oh wow. Thanks for the insight. I’m foreign to contract type jobs. So, I’d really need to compare and learn. I’d love some work life balance! I’d have to review everything. Is your contract job to hire or just limited? What do you plan to do after your contract is done? This contract job is W2. But doesn’t say how long.

Following this as I am curious too

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So many options but so many unknowns. Hope to get some perspectives.

Is the contract $ job higher because you get less benefits ?

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SPM1 - wow that means I’d prob just be making the same after everything has been withheld or taken out. That does help put things into perspective. Thanks so much!

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Contract jobs pay well, but I've seen a lot of them offer you less per hour once they decide they want to bring you on since they'll be offering you benefits. I would not leave a permanent position for a contract role unless you can be without work for a while. Contracts don't always run the initial length and can end at any time.

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LT1 - well, I probably wouldn’t disclose it’s a contract job. But yes, still a high risk in doing all of that. It doesn’t seem like such a good idea after running some numbers.

It depends. If it’s a 1099 contract, HELL NO.
If it’s a W2 contract through an agency and I don’t have to deal with my own benefits… and if the contract is at least 12 months, then hell YES.

I left federal job to be a W2 contractor with an agency and make 230% more money (even taking into account that my 4 weeks time off would be unpaid). Been here since Sep 2022, and happy so far. Saving up for when I decide to become a direct full time employee somewhere.

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As a current 1099 contractor, I don’t like it because I don’t get benefits and I have to pay my own taxes. I’ve also had a second W2 contractor position, it was great and lasted about a year. Taxes were taken out. I’m currently looking for a W2 salaried position. For me, it’s all about paying taxes when I get paid. As W2, the company or agency takes the taxes out of your check every payroll. I’m good with that. As a 1099 contractor, I’ve had to pay taxes because I receive the gross amount every payroll.

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Thanks for the insight. One more question. Contract roles seem not as promising as a regular job. Do you find that true? Also, just want to say - sounds like you’re winning! I’d love some work life balance while wfh with two salaries.

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I would only leave a real job for a contract if my family had a second income and my real job had become more toxic than the idea of not having a real job.

Contractors are often the first ones to be cut, and yes they can and will end it before the nominal term.

At many companies contractors are second-class citizens, you may be excluded from processes and meetings. You may find yourself looking for a new gig in a few months, potentially without warning.

As others describe, you generally don't get benefits as such. If it's through a contract house, they may claim benefits, but when your medical is through someone nobody's ever heard of or accepts, and doesn't cover jack, that isn't a benefit. Add up the value of keeping medical coverage, and look at the cost and coverage of marketplace plans. Even the most expensive ones tend to not be as good as an average corporate plan. Add in the value of PTO, of 401k matching, of the bonus won't won't get. Even at a company that doesn't do bonuses, the rest can EASILY add up to USD 50k/year.

Thank you for this. Sounds much more of a high risk! I’m
Leaning towards not doing it. I’m almost wondering if I could do both existing and a contract job…. But I don’t think I can handle the stress.

No

“No” is looking like my answer too.

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