I was just wondering if anyone has chosen to work contract as an operator. I have been asked a few times lately intstead of hourly. I was just wondering what should i know before making the switch. What kinds of tips can you give that I wouldn't know like insurance book keeping legal... not sure what questions to ask but would be easyer to get tips from guys that know then to learn from my own mistakes like not having the right insurance could get expensive
In most states in the US you'd need a contractors license to work out side of the payroll.
Like Drc said. using there equipment, working there schedule, and someone telling you what to do would not allow it in the US
Your best bet would be to talk to an accountant....your accountant, not theirs. Just out of curiosity, why would you want to make the switch? What´s in it for you?
What about insurance if something goes pear shaped??? Are you covered for that??? Public Liability could cost a lot, depending on what jobsite you are on.
This is reasonably common in Oz, basically instead of being an employee you are a sub-contractor. You have to have an ABN (Australian Business Number) which is easy to do and I am pretty sure you have to insure yourself against injury but it is the responsibility of the machine owner to insure it. The rate of pay is higher but there is no leave money, superannuation payments, etc. Basically, the way I understand it, you invoice the company you are sub-contracting to, with your hours worked plus tax. These sort of arrangements are usually for jobs that are short term and unfortunately are also used to con younger,inexperienced workers into working for peanuts. Relief operators also use this arrangement. Do talk to an accountant, as there may be tax issues because you are operating as a business. Along the lines of, you may get $20/hour working as an employee and get $30/hour as a subbie but pay a higher tax rate and lose $8/hour on tax, leaving you better of $2/hour to cover your holiday pay, insurance costs, etc
Yep, what Hendrik said. It's mostly a tax and employee benefit issue, the company is shifting that burden to you. You sub yourself out as an operator and they only pay you for the hours worked. No bennies, no taxes for the company and you become a straight expense to them. Very good advice to check the tax implications for yourself. Once you add in your tax liability and insurance costs you will probably be making the same or less as a salary/hourly employee BUT you will have more paperwork at the end of the year. Look at it carefully.
better money and tax right offs was talking to a guy that was doing it in alberta. I have never herd of working that way as an operator until recently and had a couple of companys asking me which way i wanted to be payed. Figured I would do a little homework on the subject.
thanks all for the replys so far
nothing like being your own boss. few advantages working for yourself. i am a contractor, way more control, tax rite offs etc.... making more cash now than ever. and working half the time. go for it....