Posted on: 25-07-09 19:59:08
Quote:
Originally posted by Fido
just wondering if a permanent employee would ask his employer to convert to contract (in order to save on taxes ) how much would the company be willing to pay w/o feeling the pinch ...
Hmm. You could easily add 30-40% more to the fulltime salary. Easily. With contract, the company has good flexibility to control their budget.
But it's not just about $s. A fulltime might gets less in terms of $s but might get work exposure that can't be matched. I've seen multiple cases where contract-offer is killed just because the candidate do not have one particular skill, where as a fulltime offer is made even if the 2/3rd or work environment do not match the candidate. Why so? A fulltime offer, usually, is made with consideration of say 10 years or so. Exception: unless the company is small/startup or the manager is still in his learning phase or lack of available candidates. Think about it as a married couple versus a couple living together for years and years without getting married.
Withdrawal from fulltime could mean a lil bit doubt on commitment. Always take your manager in confidence before making any such request. You don't want that request to backfire (don't make it feel like ... "yeah, i wanna resign, but i don't have any other offer right now"
.I would prefer contracts with any other company over current fulltime-company.
Thanks Sville ,
Yes I agree with what you say with regards to all round development in permanent positions ..... contract work works best in skill specialized area ... the company may be hesitant in offer new sill required work to a contractor ...... and thats the reason why I wish to stress my commitment hence can discount my contract rate .......... I would explain to the Company to treat me as permanent , but pay me as contract ......... its purely for tax reasons ...... I feel both save when it comes to contract .
So let us say if x is getting 70K .... and CTC to company is 85K .... plus another 25%............ 100K /12/(8*160)........ or the company could pay $50/hr .... and still might continue to have for a long time w/o feeling the pinch ...........
In ordinary contract situations (3-6 months ) I would have said the same position of 70K may have got 65-70 / hr ....
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Fido.
