Full time vs contracting

[KGFsutthi]

If you are talented both are same

[Vaampire]

21 minutes ago, Spartan said:

Why laughing rey @Spartan

[Deadp0ol2]

Good pack FT with benefits is much better than adda meeda koolodu. Ofcourse, even if koolodu treated like sh!t at workplace paisal ostunaai kada ani tudiseskune rakam anukondi. Alavaataina paanalu

[baabaa]

3 hours ago, perugu_vada said:

Yeah .. fte aithe chestha for insurance benefits .. inka contracting aithe 2-3 months chesi break

uber king @Sucker uncle degara tips do’s and dont’s (like no scratching ladies during trips) theskunta .. incase Uber cheyali ante 

Bhayya, you look like experienced in getting contracts. Okka question, asalu ee rojullu emaina $90-$100/hr billing vache contracts untanayya. Unte emi technologies? Nenu db side, all contracts are 60-70/hr. Asalu lately 70/hr aiyte not crossing for DBA's.

[MeetFriendz]

5 hours ago, Sanjiv said:

Yes, you use a payroll processing company for your company like WagePoint.com which is very cheap, $20 flat rate plus $2 per employee per month. They do all the monthly, quarterly and yearly filings. I was using Wells Fargo, their lowest plan was $57 a month for upto 3 employees and was wasting money as I'm just one employee. Your CPA should be able to guide you through S-Corp deductions, filings, etc.

so by taking a contracting project, can we run our pay within our own company (by setting up s-corp)? 

So is it good to approach a CPA to have company setup, filing, etc guidance or what exactly is the process. Business kosam kadhu as you mentioned we can save more on contracting so wanted to check on it. As i dont have actual information on how to open a company etc thought to check.

[MeetFriendz]

24 minutes ago, baabaa said:

Bhayya, you look like experienced in getting contracts. Okka question, asalu ee rojullu emaina $90-$100/hr billing vache contracts untanayya. Unte emi technologies? Nenu db side, all contracts are 60-70/hr. Asalu lately 70/hr aiyte not crossing for DBA's.

I see mostly under 60 not even 60 these days for DBAs

[Sanjiv]

3 hours ago, MeetFriendz said:

so by taking a contracting project, can we run our pay within our own company (by setting up s-corp)? 

So is it good to approach a CPA to have company setup, filing, etc guidance or what exactly is the process. Business kosam kadhu as you mentioned we can save more on contracting so wanted to check on it. As i dont have actual information on how to open a company etc thought to check.

You don't need a CPA or Legal Zoom to incorporate a company. You can do it yourself for less than $100 in a week. Just go to Secretary of State website for your state, download/fill-in the form Articles of Incorporation and submit. Once registered with the state, you can apply for EIN and then Subchapter S-Corporation Election status with the IRS using Form 2553 to avoid double taxation -

https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations

Your company signs the contract with the vendor/client on C2C and gets paid by the vendor/client (business checking account). You pay yourself a FT salary from your company. You run payroll and pay payroll taxes, unemployment insurance, etc.

While filing taxes, it is advisable to use a CPA.

[Sanjiv]

2 hours ago, baabaa said:

Bhayya, you look like experienced in getting contracts. Okka question, asalu ee rojullu emaina $90-$100/hr billing vache contracts untanayya. Unte emi technologies? Nenu db side, all contracts are 60-70/hr. Asalu lately 70/hr aiyte not crossing for DBA's.

Backend rates are always low. Java, JavaScript demand higher rates.

[hyperbole]

19 hours ago, Peruthopaniemundhi said:

I will give a real time scenario of two candidates who is doing full time vs contracting. These two started started their careers at the same time, initially both started contracting but one guy moved to full time another person continued to do contracting, Covid start ayna 1 year ki this guy started doing 2 jobs. Now let me explain how financially and career progression wise eyla unnaru ani. 
 

Contractor: 12 years of exp

2 jobs, $60/hr earning $240k

health insurance: paying $14k including family

no 401k

skills set: good developer, high technical but any one with 5 years experience can do his job.

he recession time lo okka job poyina  inko job undi.

priority date early 2015. 
 

Fulltime: 12 years exp

Leadership role, AD role. Enhanced his carrier from developer, Senior developer, principle developer, manager and AD.

salary: $190k+free health insurance +6%  of salary contribution towards 401k+18%bonus+stocks (RSUs+options)

recession time lo he is impacted but he gets 3 months of severance (+2 months of grace period) so 5 months lo he can find something.

green card: since he moved FT, his green card is delayed and priority date is in early 2016.

So if you are on OPT, or early H1 which path do you choose ?

I did both, with a family consulting is difficult and if you have to move cities, now a days remote is more common but a couple of years you had to move cities. Fortunately I have done most of my contracting in Bay Area owing to my core programming skill set but saw some friends who used to work in niche technologies like SAP and others had to move a lot.

with family/kids comes the vacation part.  In this one thing alone FT takes the cake,  vacation and accumulating vacation days is like 2 months salary. other factors like 401k, insurance and RSUs offer you a security blanket. Carrier growth is another major factor that you mentioned.

For a similar pay, remember you are saying your contracting friend is doing 2 jobs which is uncommon and then he has to slog to get done and a lot with a lot of stress 

[baabaa]

45 minutes ago, Sanjiv said:

Backend rates are very low. Java, JavaScript demand higher rates.

Angular is high ani vinna. But high ante $90-$100/hr untaya?? i mean 10/hr extra ki new technology learning waste but lets say 30-40/hr difference unte appudu new tech nerchukotam worth kada

[MeetFriendz]

1 hour ago, Sanjiv said:

You don't need a CPA or Legal Zoom to incorporate a company. You can do it yourself for less than $100 in a week. Just go to Secretary of State website for your state, download/fill-in the form Articles of Incorporation and submit. Once registered with the state, you can apply for EIN and then Subchapter S-Corporation Election status with the IRS using Form 2553 to avoid double taxation -

https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations

Your company signs the contract with the vendor/client and gets paid by the vendor/client (business checking account). You pay yourself a FT salary from your company. You run payroll and pay payroll taxes, unemployment insurance, etc.

While filing taxes, it is advisable to use a CPA.

Got it, thank you bro 🙏

what if, if we are not on project and we dont get any income to the company say for an year or more, will there be any legal implications etc.?

Also if we get a CPA, will they be providing all information that is required to maintain company legally or will there be any other things? also do we need to have any insurance for company etc things? and can company be online or do we need to rent a space or can be our apt or home address?

 if other already knew about this and hijackings the thread, and thanks bro for answering things patiently.

 

[MeetFriendz]

1 hour ago, Sanjiv said:

Backend rates are very low. Java, JavaScript demand higher rates.

Yeah i have observed the same. anything latest in the market andaru jump iyepotunaru i dont know how they mange without know in-depth. backend tech  interview lo deep scrutiny chestunaru on the contrary to work ki velthe generic stuff tappa yemi cheyinchukoru. Sometimes i wonder how people are able to manage in interview after working for so long.

[BommaliNinnodhala]

Luck factor man 

contractors more than 5- 10years same client good billing rate vachevalu unaru or one project over ayaka without moving same city local lo another one vache valu unaru — ivi exceptional cases — other wise FT piece of mind if not for Money

 

[Sanjiv]

3 hours ago, MeetFriendz said:

Got it, thank you 🙏

what if, if we are not on project and we dont get any income to the company say for an year or more, will there be any legal implications etc.?

Also if we get a CPA, will they be providing all information that is required to maintain company legally or will there be any other things? also do we need to have any insurance for company etc things? and can company be online or do we need to rent a space or can be our apt or home address?

With a business, you have to file taxes twice - biz in March and personal in April separately (you can also have them extended to Sep/Oct). If there is no income, you can file zero monthly payroll and zero taxes. However, if the biz is not generating revenue for some years, IRS may ask you to shut it down as it is just a hobby.

Business is a separate entity that shields you and protects your personal wealth from getting taken away in case of any law suits. No one can touch your personal assets - they have to go after your business.

A CPA can file your taxes while including any deductions and write-offs. They can also do payroll but it is expensive like more than $50 a month (WagePoint is cheaper).

A biz needs to have an address. You can use your home address for your business and even use it for home office and deduct a portion of your rent. I deduct $600 a month for home office (my company pays me the rent which is income to me). If you want privacy, you can use a local PO Box as the address. If you incorporate your biz in another state, you need a Registered Agent filed with SOS in that state to represent your biz and forward any correspondence to you (costs about $150 a year).

Yes, the business needs some insurances required by the client/vendor and their name added as beneficiary on the certificates (when you are on a contract) and you can negotiate to have some of these waived or lowered. If your company does not have a contract, no insurance is required. Here is what the vendor required from my company on my contract -

1. Workers Compensation & Employers Liability with limits of $1,000,000.
2. Commercial General Liability with a combined single limit of $1,000,000 per occurrence.
3. Automobile Liability with a combined single limit of $1,000,000 per occurrence.
4. Umbrella or Excess Liability with limits not less than $5,000,000 per occurrence (provide additional limits for employers’ liability, GL and AL insurance.
5. Errors and Omissions or Professional Liability with limits of $2,000,000

That was a total of 10M in coverage. I had a long conversation with the vendor's legal counsel. Since I work from home and no question of getting injured at workplace, etc. I questioned their counsel - 1, 2 and 3 are irrelevant/not applicable and hence got waived. Since 4 is covering 1, 2 and 3 which were already waived, 4 is not required either. So only 5 was required and I got it lowered to 1M which means I brought it from 10M down to 1M in coverage. The recruiter who I was dealing with until then, her jaw dropped when I told her this. I got the 5 (E&O/PL) for about $68 a month from Hiscox through TechInsurance.com.

On a prior contract, they required my company to get GL, Workers Comp, Fidelity, etc which I bought initially but after a couple of years, they agreed to have just the GL and later on, they agreed to have even the GL canceled (zero insurance). It all depends on how you negotiate.

[CBNmyGOD]

4 hours ago, baabaa said:

Bhayya, you look like experienced in getting contracts. Okka question, asalu ee rojullu emaina $90-$100/hr billing vache contracts untanayya. Unte emi technologies? Nenu db side, all contracts are 60-70/hr. Asalu lately 70/hr aiyte not crossing for DBA's.

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