Consulting gig

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®
Fri Jun 23 07:33:22 CDT 2006

"Network Guru" <gurumcp@lameroftheweek.com> wrote in message
news:uGy8OGnlGHA.4716@TK2MSFTNGP04.phx.gbl...
> 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.

Manny
Fri Jun 23 08:21:10 CDT 2006

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" <gurumcp@lameroftheweek.com> wrote in message
news:uGy8OGnlGHA.4716@TK2MSFTNGP04.phx.gbl...
> 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
Fri Jun 23 11:20:33 CDT 2006

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


"Network Guru" <gurumcp@lameroftheweek.com> wrote in message
news:uGy8OGnlGHA.4716@TK2MSFTNGP04.phx.gbl...
> 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.
>
>
>
>
>
>
>

Kline
Fri Jun 23 14:04:44 CDT 2006

>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

Briscobar
Fri Jun 23 14:11:22 CDT 2006

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.

Consultant
Fri Jun 23 14:18:52 CDT 2006

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" <gurumcp@lameroftheweek.com> wrote in message
news:uGy8OGnlGHA.4716@TK2MSFTNGP04.phx.gbl...
> 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.
>
>
>
>
>
>
>

Jtyc
Fri Jun 23 14:19:51 CDT 2006

> 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.

Briscobar
Fri Jun 23 14:34:31 CDT 2006

Jtyc <yo@respondtothegroup.com> 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.

Kline
Mon Jun 26 11:50:02 CDT 2006

>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
Mon Jun 26 11:58:57 CDT 2006

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

"Kline Sphere" <.@> wrote in message
news:cs30a2lovqesjqat6mv9gn576q3u50kvl5@4ax.com...
> >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