Consulting gig

Discussion in 'MCSE' started by Network Guru, Jun 23, 2006.

  1. Network Guru

    Network Guru Guest

    I've always been a full-time employee during my existance in IT. Well, I
    have an opportunity for a Consulting gig that looks attractive on the
    surface. What are the pros and cons of consulting compared to full-time.
    Sure, I can google a bunch of opinions, but I'd like to hear it from some
    of the oldtimers in this Newgroup. what is W-2, independent contractor and
    other terms that are thrown around. If it matters any, I am more of a
    business/developer type and am not in networking. I only visit this group
    for entertainment purposes and to ask a serious question once in a blue
    moon. Say for example my current salary is xxx dollars annually, how do I
    convert that into an hourly rate given all the variables? I'm hoping
    Consultant, Kline, Frisbee and others answer my query.
     
    Network Guru, Jun 23, 2006
    #1
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  2. Network Guru

    FrisbeeĀ® Guest

    "Network Guru" <> wrote in message
    news:...
    > I've always been a full-time employee during my existance in IT. Well,
    > I have an opportunity for a Consulting gig that looks attractive on the
    > surface. What are the pros and cons of consulting compared to full-time.
    > Sure, I can google a bunch of opinions, but I'd like to hear it from some
    > of the oldtimers in this Newgroup. what is W-2, independent contractor and
    > other terms that are thrown around. If it matters any, I am more of a
    > business/developer type and am not in networking. I only visit this
    > group for entertainment purposes and to ask a serious question once in a
    > blue moon. Say for example my current salary is xxx dollars annually,
    > how do I convert that into an hourly rate given all the variables? I'm
    > hoping Consultant, Kline, Frisbee and others answer my query.


    I do remember reading somewhere a formula to calculate what you'd need to
    earn as a consultant to at least break even with a regular job, but I forget
    where I saw it, sorry.

    W-2 means that they actually put you on their payroll, but it's still a
    temporary gig. The advantage of that for you is that they pay the matching
    FICA, but the disadvantage is that you don't get to claim any expenses at
    all for it on your Schedule C. Since matching FICA is only about 7.45%,
    personally I think it's better to work for them as a sub-contractor. That
    does mean you'll have to file a Schedule C if you make at least $600, but
    you get to claim all sorts of expenses. I've been filing a Schedule C from
    work on the side for 15 years, and it works out pretty good, except that the
    very first one I ever filed (well, actually I made the mistake of allowing
    my Dad to file it for me) got audited, and I got taken to the cleaners. It
    was an expensive lesson, though, and it also resulted in my divorcing of my
    first wife.

    The biggest obvious problem of consulting, and short-term contracts is that
    you need to have something lined-up for when it's over. In my case, I do my
    consulting after-hours and keep my regular job, so that's not an issue.

    Good luck, NG.
     
    FrisbeeĀ®, Jun 23, 2006
    #2
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  3. Network Guru

    Manny Borges Guest

    for 1099 type developer. A good .net developer that is, I have seen rates
    vary from 60 to 150 dollars per hour.

    Generally, the shorter the engagement the higher the pay should be.
    The newer the technology, the higher the pay. A Classic ASP web app would be
    far below a .Net 3.0 web app.

    --
    Manny Borges
    MCSE NT4-2003 (+ Security)
    MCT, Certified Cheese Master

    There are 10 kinds of people in the world. Those who do understand binary
    and those who don't.
    "Network Guru" <> wrote in message
    news:...
    > I've always been a full-time employee during my existance in IT. Well,
    > I have an opportunity for a Consulting gig that looks attractive on the
    > surface. What are the pros and cons of consulting compared to full-time.
    > Sure, I can google a bunch of opinions, but I'd like to hear it from some
    > of the oldtimers in this Newgroup. what is W-2, independent contractor and
    > other terms that are thrown around. If it matters any, I am more of a
    > business/developer type and am not in networking. I only visit this
    > group for entertainment purposes and to ask a serious question once in a
    > blue moon. Say for example my current salary is xxx dollars annually,
    > how do I convert that into an hourly rate given all the variables? I'm
    > hoping Consultant, Kline, Frisbee and others answer my query.
    >
    >
    >
    >
    >
    >
    >
     
    Manny Borges, Jun 23, 2006
    #3
  4. Network Guru

    mugen Guest

    why just consult, why not start your own company..
    beats the hell out of working for a living


    "Network Guru" <> wrote in message
    news:...
    > I've always been a full-time employee during my existance in IT. Well,
    > I have an opportunity for a Consulting gig that looks attractive on the
    > surface. What are the pros and cons of consulting compared to full-time.
    > Sure, I can google a bunch of opinions, but I'd like to hear it from some
    > of the oldtimers in this Newgroup. what is W-2, independent contractor and
    > other terms that are thrown around. If it matters any, I am more of a
    > business/developer type and am not in networking. I only visit this
    > group for entertainment purposes and to ask a serious question once in a
    > blue moon. Say for example my current salary is xxx dollars annually,
    > how do I convert that into an hourly rate given all the variables? I'm
    > hoping Consultant, Kline, Frisbee and others answer my query.
    >
    >
    >
    >
    >
    >
    >
     
    mugen, Jun 23, 2006
    #4
  5. Network Guru

    Kline Sphere Guest

    >I've always been a full-time employee during my existance in IT. Well, I
    >have an opportunity for a Consulting gig that looks attractive on the
    >surface. What are the pros and cons of consulting compared to full-time.
    >Sure, I can google a bunch of opinions, but I'd like to hear it from some
    >of the oldtimers in this Newgroup. what is W-2, independent contractor and
    >other terms that are thrown around. If it matters any, I am more of a
    >business/developer type and am not in networking. I only visit this group
    >for entertainment purposes and to ask a serious question once in a blue
    >moon. Say for example my current salary is xxx dollars annually, how do I
    >convert that into an hourly rate given all the variables? I'm hoping
    >Consultant, Kline, Frisbee and others answer my query.


    Frisbee's already given you a good run down on those terms so I won't
    repeat. So,....

    There is a good market both in the uk (and the rest of europe for that
    matter) and back home for *top* notch business analysts, especially
    those with a proven (five years plus) history gained in the financial
    sector (especially banking). Over here, I see rates of between 60-120
    GPB per hour, but those London based banks really do want exceptional
    experience for that sort of money.

    From where I see things, those with technical skills only are in far
    less demand. We occasionally hire freelance programmers, for fixed
    price mundane coding jobs and the dollar rate is nowhere near that
    level.

    Don't forget, when you go it alone there's no sick pay, holiday pay,
    health cover, pension etc which together counts for a lot, well with
    me it does.

    Also, ping C and Billyw they work freelance and give you an better
    insight.

    Kline Sphere (Chalk) MCNGP #3
     
    Kline Sphere, Jun 23, 2006
    #5
  6. Network Guru

    Briscobar Guest

    Kline Sphere <.@> rambled:
    >
    > Don't forget, when you go it alone there's no sick pay, holiday pay,
    > health cover, pension etc which together counts for a lot, well with
    > me it does.


    ....and your taxes don't get taken out of each week's paycheck, because
    you're not on payroll. Don't forget to file your taxes every 3 months, or
    you get penalized (in the US, at least)

    --
    KB

    MCNGP #26
    nerd32768 vowed to kill my family if I didn't add a link to
    www.mcngp.com to my signature.
     
    Briscobar, Jun 23, 2006
    #6
  7. Network Guru

    Consultant Guest

    i wouldn't have it any other way. go 1099 or corp-to-corp, as this will
    allow you to pay your taxes yourself, and will give you a huge tax benefit.
    feel free to email me at yahoo and i can give you more info


    "Network Guru" <> wrote in message
    news:...
    > I've always been a full-time employee during my existance in IT. Well,
    > I have an opportunity for a Consulting gig that looks attractive on the
    > surface. What are the pros and cons of consulting compared to full-time.
    > Sure, I can google a bunch of opinions, but I'd like to hear it from some
    > of the oldtimers in this Newgroup. what is W-2, independent contractor and
    > other terms that are thrown around. If it matters any, I am more of a
    > business/developer type and am not in networking. I only visit this
    > group for entertainment purposes and to ask a serious question once in a
    > blue moon. Say for example my current salary is xxx dollars annually,
    > how do I convert that into an hourly rate given all the variables? I'm
    > hoping Consultant, Kline, Frisbee and others answer my query.
    >
    >
    >
    >
    >
    >
    >
     
    Consultant, Jun 23, 2006
    #7
  8. Network Guru

    Jtyc Guest

    > you're not on payroll. Don't forget to file your taxes every 3 months, or
    > you get penalized (in the US, at least)


    oops...


    hmm... I owe for two quarters right now... eh... I like paying interest.


    I know the government will do the right thing with that extra money.
     
    Jtyc, Jun 23, 2006
    #8
  9. Network Guru

    Briscobar Guest

    Jtyc <> rambled:
    >
    >> you're not on payroll. Don't forget to file your taxes every 3
    >> months, or you get penalized (in the US, at least)

    >
    > oops...
    >
    >
    > hmm... I owe for two quarters right now... eh... I like paying
    > interest.
    >
    >
    > I know the government will do the right thing with that extra money.


    Yeah, I got whacked when I didn't pay until April of the following year.
    With a "real" job, the government only pays you once a year, if you're
    lucky. How was I supposed to know that they have a double standard?

    --
    KB

    MCNGP #26
    I'm running out of stupid stuff to write. Oh by the way: www.mcngp.com.
     
    Briscobar, Jun 23, 2006
    #9
  10. Network Guru

    Kline Sphere Guest

    >i wouldn't have it any other way. go 1099 or corp-to-corp, as this will
    >allow you to pay your taxes yourself, and will give you a huge tax benefit.


    Totally agree, a number of buddies of mine have done the same and they
    have the real estate to prove. I can't help thinking that maybe I
    should have done the same thing all those years ago.....

    Kline Sphere (Chalk) MCNGP #3
     
    Kline Sphere, Jun 26, 2006
    #10
  11. Network Guru

    Consultant Guest

    yeah, i jumped back into it back in 98, before y2k, it's been good to me

    "Kline Sphere" <.@> wrote in message
    news:...
    > >i wouldn't have it any other way. go 1099 or corp-to-corp, as this will
    >>allow you to pay your taxes yourself, and will give you a huge tax
    >>benefit.

    >
    > Totally agree, a number of buddies of mine have done the same and they
    > have the real estate to prove. I can't help thinking that maybe I
    > should have done the same thing all those years ago.....
    >
    > Kline Sphere (Chalk) MCNGP #3
     
    Consultant, Jun 26, 2006
    #11
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