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What should I know or ask when negotiating a contract?
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I responded to an RFP (request for proposal) for a contracting position.
The RFP specified a 1 year contract, with a possibility of a second year.
I have reason to believe there's a reasonable chance that this position could transition to a full-time employed position.
In the proposal I sent, I mentioned a salary figure as my proposed contract compensation.
I'm a little worried that I may have come in a bit low; the figure is roughly 50% more than what I currently make in my full time position (which I would have to leave to take the contract position).
I've contracted before, but either through an agency, or for short term side work at an hourly rate.
For reference, I'm in the US, and I will be able to switch to my wife's health insurance policy (which is slightly more out-of-pocket cost for me, but it's a vastly better policy).
The interview seemed to go well. If they do decide that they want to hire me, what can I expect to happen? What questions do I need to ask?
Main concerns I have are:
salaried vs hourly compensation
sick/vacation time
how taxes will be handled
negotiation contracting
asked May 13 '16 at 16:08
Beofett
1,87821523
 |Â
show 6 more comments
up vote
3
down vote
favorite
I responded to an RFP (request for proposal) for a contracting position.
The RFP specified a 1 year contract, with a possibility of a second year.
I have reason to believe there's a reasonable chance that this position could transition to a full-time employed position.
In the proposal I sent, I mentioned a salary figure as my proposed contract compensation.
I'm a little worried that I may have come in a bit low; the figure is roughly 50% more than what I currently make in my full time position (which I would have to leave to take the contract position).
I've contracted before, but either through an agency, or for short term side work at an hourly rate.
For reference, I'm in the US, and I will be able to switch to my wife's health insurance policy (which is slightly more out-of-pocket cost for me, but it's a vastly better policy).
The interview seemed to go well. If they do decide that they want to hire me, what can I expect to happen? What questions do I need to ask?
Main concerns I have are:
salaried vs hourly compensation
sick/vacation time
how taxes will be handled
negotiation contracting
asked May 13 '16 at 16:08
Beofett
1,87821523
1
If this question is too broad or opinion based, I can edit to focus on specific areas. However, this is all new to me, so I'm really trying to get a feeling in general of what to expect, and what to watch out for.
– Beofett
May 13 '16 at 16:10
RFP mystery abbreviation?
– zipzit
May 13 '16 at 16:29
Request for Proposal
– Chris E
May 13 '16 at 16:32
@zipzit request for proposal. I've edited to define it.
– Beofett
May 13 '16 at 16:33
If you have medical coverage from another source, a 1099 contract employee has some nice other benefits. If you are an employee, you can't claim mileage. If you are an independent contractor working at a facility, your mileage from home to that office is deductible, etc...
– zipzit
May 13 '16 at 16:38
 |Â
show 6 more comments
up vote
3
down vote
favorite
up vote
3
down vote
favorite
I responded to an RFP (request for proposal) for a contracting position.
The RFP specified a 1 year contract, with a possibility of a second year.
I have reason to believe there's a reasonable chance that this position could transition to a full-time employed position.
In the proposal I sent, I mentioned a salary figure as my proposed contract compensation.
I'm a little worried that I may have come in a bit low; the figure is roughly 50% more than what I currently make in my full time position (which I would have to leave to take the contract position).
I've contracted before, but either through an agency, or for short term side work at an hourly rate.
For reference, I'm in the US, and I will be able to switch to my wife's health insurance policy (which is slightly more out-of-pocket cost for me, but it's a vastly better policy).
The interview seemed to go well. If they do decide that they want to hire me, what can I expect to happen? What questions do I need to ask?
Main concerns I have are:
salaried vs hourly compensation
sick/vacation time
how taxes will be handled
negotiation contracting
asked May 13 '16 at 16:08
Beofett
1,87821523
I responded to an RFP (request for proposal) for a contracting position.
The RFP specified a 1 year contract, with a possibility of a second year.
I have reason to believe there's a reasonable chance that this position could transition to a full-time employed position.
In the proposal I sent, I mentioned a salary figure as my proposed contract compensation.
I'm a little worried that I may have come in a bit low; the figure is roughly 50% more than what I currently make in my full time position (which I would have to leave to take the contract position).
I've contracted before, but either through an agency, or for short term side work at an hourly rate.
For reference, I'm in the US, and I will be able to switch to my wife's health insurance policy (which is slightly more out-of-pocket cost for me, but it's a vastly better policy).
The interview seemed to go well. If they do decide that they want to hire me, what can I expect to happen? What questions do I need to ask?
Main concerns I have are:
salaried vs hourly compensation
sick/vacation time
how taxes will be handled
negotiation contracting
asked May 13 '16 at 16:08
Beofett
1,87821523
edited May 13 '16 at 16:34
asked May 13 '16 at 16:08
Beofett
1,87821523
asked May 13 '16 at 16:08
Beofett
1,87821523
asked May 13 '16 at 16:08
Beofett
1,87821523
1,87821523
1
If this question is too broad or opinion based, I can edit to focus on specific areas. However, this is all new to me, so I'm really trying to get a feeling in general of what to expect, and what to watch out for.
– Beofett
May 13 '16 at 16:10
RFP mystery abbreviation?
– zipzit
May 13 '16 at 16:29
Request for Proposal
– Chris E
May 13 '16 at 16:32
@zipzit request for proposal. I've edited to define it.
– Beofett
May 13 '16 at 16:33
If you have medical coverage from another source, a 1099 contract employee has some nice other benefits. If you are an employee, you can't claim mileage. If you are an independent contractor working at a facility, your mileage from home to that office is deductible, etc...
– zipzit
May 13 '16 at 16:38
 |Â
show 6 more comments
1
If this question is too broad or opinion based, I can edit to focus on specific areas. However, this is all new to me, so I'm really trying to get a feeling in general of what to expect, and what to watch out for.
– Beofett
May 13 '16 at 16:10
RFP mystery abbreviation?
– zipzit
May 13 '16 at 16:29
Request for Proposal
– Chris E
May 13 '16 at 16:32
@zipzit request for proposal. I've edited to define it.
– Beofett
May 13 '16 at 16:33
If you have medical coverage from another source, a 1099 contract employee has some nice other benefits. If you are an employee, you can't claim mileage. If you are an independent contractor working at a facility, your mileage from home to that office is deductible, etc...
– zipzit
May 13 '16 at 16:38
1
1
If this question is too broad or opinion based, I can edit to focus on specific areas. However, this is all new to me, so I'm really trying to get a feeling in general of what to expect, and what to watch out for.
– Beofett
May 13 '16 at 16:10
If this question is too broad or opinion based, I can edit to focus on specific areas. However, this is all new to me, so I'm really trying to get a feeling in general of what to expect, and what to watch out for.
– Beofett
May 13 '16 at 16:10
RFP mystery abbreviation?
– zipzit
May 13 '16 at 16:29
RFP mystery abbreviation?
– zipzit
May 13 '16 at 16:29
Request for Proposal
– Chris E
May 13 '16 at 16:32
Request for Proposal
– Chris E
May 13 '16 at 16:32
@zipzit request for proposal. I've edited to define it.
– Beofett
May 13 '16 at 16:33
@zipzit request for proposal. I've edited to define it.
– Beofett
May 13 '16 at 16:33
If you have medical coverage from another source, a 1099 contract employee has some nice other benefits. If you are an employee, you can't claim mileage. If you are an independent contractor working at a facility, your mileage from home to that office is deductible, etc...
– zipzit
May 13 '16 at 16:38
If you have medical coverage from another source, a 1099 contract employee has some nice other benefits. If you are an employee, you can't claim mileage. If you are an independent contractor working at a facility, your mileage from home to that office is deductible, etc...
– zipzit
May 13 '16 at 16:38
 |Â
show 6 more comments
2 Answers
2
active
oldest
votes
up vote
2
down vote
Don't think of it as a possible full-time position or plan for that. It's a contract. Even if a manager tells you off-the-record "we'd like for this to be permanent at some point" you have to remember that until you actually get an offer for that, it's still a contract. Contracts end.
As for your taxes, you'll need to pay your own social security and any state and local taxes. There are other things you'll need to pay as well. For that you need to talk to an accountant qualified to advise you on these things, if you don't know one already.
You may have indeed come in a bit low but at least it's more than what you're getting. Unfortunately, your offer is your offer and that told them that it is what you'll accept. They really have no incentive to renegotiate.
answered May 13 '16 at 16:15
Chris E
40.4k22129166
suggest improvements |Â
up vote
0
down vote
I think you can probably assume that it's a W-2 contract. And depending on the environment you're in, contract vs fulltime may not make a huge difference except for who sends you a check every two weeks.
answered May 13 '16 at 17:24
Xavier J
26.3k104797
If it's not, the recruiter has more at risk by not disclosing that up front, because far more people will be 1099-averse than W-2 averse. The recruiter would be foolish to go thru the interview process, get the candidate hooked, and then have the candidate bail because of a sudden announcement that it's 1099.
– Xavier J
May 13 '16 at 18:01
To clarify, there is no recruiter. The RFP was issued directly by the company on their website. I replied directly to it. I honestly have no idea if it's w-2 or 1099, which sounds like the type of information I should find out if I'm offered the position (which is why I asked the question, after all).
– Beofett
May 13 '16 at 18:09
2
As someone who knew nothing about the distinction between a 1099 contract and a w2 contract, I found this article quite helpful: fool.com/investing/general/2015/05/20/…
– Lumberjack
May 13 '16 at 19:27
suggest improvements |Â
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
2
down vote
Don't think of it as a possible full-time position or plan for that. It's a contract. Even if a manager tells you off-the-record "we'd like for this to be permanent at some point" you have to remember that until you actually get an offer for that, it's still a contract. Contracts end.
As for your taxes, you'll need to pay your own social security and any state and local taxes. There are other things you'll need to pay as well. For that you need to talk to an accountant qualified to advise you on these things, if you don't know one already.
You may have indeed come in a bit low but at least it's more than what you're getting. Unfortunately, your offer is your offer and that told them that it is what you'll accept. They really have no incentive to renegotiate.
answered May 13 '16 at 16:15
Chris E
40.4k22129166
suggest improvements |Â
up vote
2
down vote
Don't think of it as a possible full-time position or plan for that. It's a contract. Even if a manager tells you off-the-record "we'd like for this to be permanent at some point" you have to remember that until you actually get an offer for that, it's still a contract. Contracts end.
As for your taxes, you'll need to pay your own social security and any state and local taxes. There are other things you'll need to pay as well. For that you need to talk to an accountant qualified to advise you on these things, if you don't know one already.
You may have indeed come in a bit low but at least it's more than what you're getting. Unfortunately, your offer is your offer and that told them that it is what you'll accept. They really have no incentive to renegotiate.
answered May 13 '16 at 16:15
Chris E
40.4k22129166
suggest improvements |Â
up vote
2
down vote
up vote
2
down vote
Don't think of it as a possible full-time position or plan for that. It's a contract. Even if a manager tells you off-the-record "we'd like for this to be permanent at some point" you have to remember that until you actually get an offer for that, it's still a contract. Contracts end.
As for your taxes, you'll need to pay your own social security and any state and local taxes. There are other things you'll need to pay as well. For that you need to talk to an accountant qualified to advise you on these things, if you don't know one already.
You may have indeed come in a bit low but at least it's more than what you're getting. Unfortunately, your offer is your offer and that told them that it is what you'll accept. They really have no incentive to renegotiate.
answered May 13 '16 at 16:15
Chris E
40.4k22129166
Don't think of it as a possible full-time position or plan for that. It's a contract. Even if a manager tells you off-the-record "we'd like for this to be permanent at some point" you have to remember that until you actually get an offer for that, it's still a contract. Contracts end.
As for your taxes, you'll need to pay your own social security and any state and local taxes. There are other things you'll need to pay as well. For that you need to talk to an accountant qualified to advise you on these things, if you don't know one already.
You may have indeed come in a bit low but at least it's more than what you're getting. Unfortunately, your offer is your offer and that told them that it is what you'll accept. They really have no incentive to renegotiate.
answered May 13 '16 at 16:15
Chris E
40.4k22129166
answered May 13 '16 at 16:15
Chris E
40.4k22129166
answered May 13 '16 at 16:15
Chris E
40.4k22129166
answered May 13 '16 at 16:15
Chris E
40.4k22129166
40.4k22129166
suggest improvements |Â
suggest improvements |Â
up vote
0
down vote
I think you can probably assume that it's a W-2 contract. And depending on the environment you're in, contract vs fulltime may not make a huge difference except for who sends you a check every two weeks.
answered May 13 '16 at 17:24
Xavier J
26.3k104797
If it's not, the recruiter has more at risk by not disclosing that up front, because far more people will be 1099-averse than W-2 averse. The recruiter would be foolish to go thru the interview process, get the candidate hooked, and then have the candidate bail because of a sudden announcement that it's 1099.
– Xavier J
May 13 '16 at 18:01
To clarify, there is no recruiter. The RFP was issued directly by the company on their website. I replied directly to it. I honestly have no idea if it's w-2 or 1099, which sounds like the type of information I should find out if I'm offered the position (which is why I asked the question, after all).
– Beofett
May 13 '16 at 18:09
2
As someone who knew nothing about the distinction between a 1099 contract and a w2 contract, I found this article quite helpful: fool.com/investing/general/2015/05/20/…
– Lumberjack
May 13 '16 at 19:27
suggest improvements |Â
up vote
0
down vote
I think you can probably assume that it's a W-2 contract. And depending on the environment you're in, contract vs fulltime may not make a huge difference except for who sends you a check every two weeks.
answered May 13 '16 at 17:24
Xavier J
26.3k104797
If it's not, the recruiter has more at risk by not disclosing that up front, because far more people will be 1099-averse than W-2 averse. The recruiter would be foolish to go thru the interview process, get the candidate hooked, and then have the candidate bail because of a sudden announcement that it's 1099.
– Xavier J
May 13 '16 at 18:01
To clarify, there is no recruiter. The RFP was issued directly by the company on their website. I replied directly to it. I honestly have no idea if it's w-2 or 1099, which sounds like the type of information I should find out if I'm offered the position (which is why I asked the question, after all).
– Beofett
May 13 '16 at 18:09
2
As someone who knew nothing about the distinction between a 1099 contract and a w2 contract, I found this article quite helpful: fool.com/investing/general/2015/05/20/…
– Lumberjack
May 13 '16 at 19:27
suggest improvements |Â
up vote
0
down vote
up vote
0
down vote
I think you can probably assume that it's a W-2 contract. And depending on the environment you're in, contract vs fulltime may not make a huge difference except for who sends you a check every two weeks.
answered May 13 '16 at 17:24
Xavier J
26.3k104797
I think you can probably assume that it's a W-2 contract. And depending on the environment you're in, contract vs fulltime may not make a huge difference except for who sends you a check every two weeks.
answered May 13 '16 at 17:24
Xavier J
26.3k104797
answered May 13 '16 at 17:24
Xavier J
26.3k104797
answered May 13 '16 at 17:24
Xavier J
26.3k104797
answered May 13 '16 at 17:24
Xavier J
26.3k104797
26.3k104797
If it's not, the recruiter has more at risk by not disclosing that up front, because far more people will be 1099-averse than W-2 averse. The recruiter would be foolish to go thru the interview process, get the candidate hooked, and then have the candidate bail because of a sudden announcement that it's 1099.
– Xavier J
May 13 '16 at 18:01
To clarify, there is no recruiter. The RFP was issued directly by the company on their website. I replied directly to it. I honestly have no idea if it's w-2 or 1099, which sounds like the type of information I should find out if I'm offered the position (which is why I asked the question, after all).
– Beofett
May 13 '16 at 18:09
2
As someone who knew nothing about the distinction between a 1099 contract and a w2 contract, I found this article quite helpful: fool.com/investing/general/2015/05/20/…
– Lumberjack
May 13 '16 at 19:27
suggest improvements |Â
If it's not, the recruiter has more at risk by not disclosing that up front, because far more people will be 1099-averse than W-2 averse. The recruiter would be foolish to go thru the interview process, get the candidate hooked, and then have the candidate bail because of a sudden announcement that it's 1099.
– Xavier J
May 13 '16 at 18:01
To clarify, there is no recruiter. The RFP was issued directly by the company on their website. I replied directly to it. I honestly have no idea if it's w-2 or 1099, which sounds like the type of information I should find out if I'm offered the position (which is why I asked the question, after all).
– Beofett
May 13 '16 at 18:09
2
As someone who knew nothing about the distinction between a 1099 contract and a w2 contract, I found this article quite helpful: fool.com/investing/general/2015/05/20/…
– Lumberjack
May 13 '16 at 19:27
If it's not, the recruiter has more at risk by not disclosing that up front, because far more people will be 1099-averse than W-2 averse. The recruiter would be foolish to go thru the interview process, get the candidate hooked, and then have the candidate bail because of a sudden announcement that it's 1099.
– Xavier J
May 13 '16 at 18:01
If it's not, the recruiter has more at risk by not disclosing that up front, because far more people will be 1099-averse than W-2 averse. The recruiter would be foolish to go thru the interview process, get the candidate hooked, and then have the candidate bail because of a sudden announcement that it's 1099.
– Xavier J
May 13 '16 at 18:01
To clarify, there is no recruiter. The RFP was issued directly by the company on their website. I replied directly to it. I honestly have no idea if it's w-2 or 1099, which sounds like the type of information I should find out if I'm offered the position (which is why I asked the question, after all).
– Beofett
May 13 '16 at 18:09
To clarify, there is no recruiter. The RFP was issued directly by the company on their website. I replied directly to it. I honestly have no idea if it's w-2 or 1099, which sounds like the type of information I should find out if I'm offered the position (which is why I asked the question, after all).
– Beofett
May 13 '16 at 18:09
2
2
As someone who knew nothing about the distinction between a 1099 contract and a w2 contract, I found this article quite helpful: fool.com/investing/general/2015/05/20/…
– Lumberjack
May 13 '16 at 19:27
As someone who knew nothing about the distinction between a 1099 contract and a w2 contract, I found this article quite helpful: fool.com/investing/general/2015/05/20/…
– Lumberjack
May 13 '16 at 19:27
suggest improvements |Â
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1
If this question is too broad or opinion based, I can edit to focus on specific areas. However, this is all new to me, so I'm really trying to get a feeling in general of what to expect, and what to watch out for.
– Beofett
May 13 '16 at 16:10
RFP mystery abbreviation?
– zipzit
May 13 '16 at 16:29
Request for Proposal
– Chris E
May 13 '16 at 16:32
@zipzit request for proposal. I've edited to define it.
– Beofett
May 13 '16 at 16:33
If you have medical coverage from another source, a 1099 contract employee has some nice other benefits. If you are an employee, you can't claim mileage. If you are an independent contractor working at a facility, your mileage from home to that office is deductible, etc...
– zipzit
May 13 '16 at 16:38