[Tfug] Contract vs Part-time work?

Bexley Hall bexley401 at yahoo.com
Tue Mar 17 09:47:38 MST 2009


> What is the definition of contract work? Is it the same as 
> getting a 1099?

"Contract" is an overloaded term.  It usually means "individual"
working on a "per job/task" basis for a client.  However, that
"individual" can be a business (LLC, sole prop, etc.) him/herself.
Or, that individual can be *supplied* by a "body shop" -- and,
the role of the body shop can be one of employer (i.e., the
individual is now an employee of the body shop) *or* simply
"agent" (i.e., someone who gets jobs *for* the individual but
bears no employer/employee relationship to that individual).

Typically, "contract" positions are reasonably well defined:
"write this piece of code", "create this operating system",
"layout this printed circuit board", etc.

OTOH, "consultant" positions tend to be fuzzier.  Their
relationship with client is typically similar.  But, the
problems they are usually asked to solve are often things
that break new ground vs. "give me model 3 of this thing".
As such, their skillsets tend to be more multidisciplinary.

Also, since "new ground" isn't tilled very often at most
firms, the need for them is usually far more sporadic
whereas a contractor can move from "write this piece of
code" immediately to "write THAT piece of code" thereafter.

<shrug>  Each is just a temp job -- though you can have very
lengthy relationships with a client in either case.  Usually,
there are strong disincentives for contractors working
for/through body shops to keep their clients from "direct
hiring" them.

I prefer hiring "temp work" this way as it limits your (my)
exposure:  if the person doesn't meet my expectations, I've
only "lost" the money I've spent on him/her to date -- no
long term consequences (i.e., I dont have to find something
else for him/her to do, worry about unemployment insurance
premium rising, liability insurance, court appearances, etc.)

For the purpose of Claude's question, I expect it boils down
to "part time employee" vs. "sole proprietor" -- in which case,
employee will probably be the right move (*unless* they
are willing to put two different compensation packages on the
table).


      




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