| From September 2008 to March 2010, contract | | | | miles that you travel in your car to get to and |
| work increased 2% and part time jobs increased | | | | from your contracting job, as this can be another |
| 16%, while temporary, permanent and full-time | | | | deductable expense. |
| positions decreased significantly (-19%, -36%, | | | | Contract work cons: |
| -4% respectively). Read on to discover why | | | | Less benefits - this isn't always the case if you |
| software engineer contract work may prove to | | | | find a generous company that is willing to |
| be a safer, smarter career move for you. | | | | negotiate your contract terms. |
| Software engineer contract work offers many | | | | Uncertainty - during the economic downturn the |
| benefits over permanent positions, although it has | | | | average job-seeker was searching primarily for |
| its downfalls. Here are some characteristics of | | | | job stability. Now that things have eased up, |
| contract work which may help determine whether | | | | contract work is gaining back its desirability for |
| or not it is a good fit for you: | | | | those who enjoy its benefits. |
| Contract work pros: | | | | Taxes and health insurance - While full-time |
| Money - usually the pay will be better than | | | | employees have taxes withheld from their |
| permanent positions since there is less overhead | | | | paychecks, contractors must take care of their |
| incurred by the employer. | | | | own taxes. Contractors are responsible for paying |
| Flexibility - since you are paid on an hourly rate, | | | | self-employment tax, which covers social security |
| you are not obliged to go over your set weekly | | | | and Medicare. Additionally they are responsible for |
| hours. In many cases you are on your own time. | | | | paying estimated taxes, which consists of |
| Also, taking contract positions allows you to work | | | | self-employment and income tax in quarterly |
| on several different projects with different | | | | installments based upon what they expect to |
| companies. | | | | earn in the year. |
| Experience - contract jobs allow you to gain | | | | Contract work can be highly beneficial to some, |
| experience and training in several different areas | | | | while not so fitting for others. Since much of |
| of expertise. This can be a great resume builder, | | | | software engineer work is project based, many |
| however, you want to avoid being labeled a | | | | of you in the field should be comfortable with this |
| job-hopper, so show some concentration in | | | | position type. In many cases software engineer |
| specific areas. | | | | contract work will be the most sensible choice for |
| Work from home opportunities - many contract | | | | those in the industry and I highly recommend |
| employment opportunities are work from home. | | | | experiencing it at some point in your career. It |
| While some employees feel the need for a | | | | can always be used as a gateway into a |
| structured environment, many love the freedom | | | | permanent position and is a great way to test if |
| offered by working from home (and its gas | | | | the company is a good fit for you. Always |
| saving benefits!). If you work from home, you | | | | remember, over 70% of contract jobs turn into |
| may qualify for a tax deduction for a home-based | | | | permanent positions, so there is a good chance it |
| office. | | | | will open up opportunities down the road (Source: |
| Tax-deductions - contractors can claim | | | | IBISWorld). |
| tax-deductable business expenses. Make sure to | | | | Employment agencies are often a good resource |
| keep record of any money you spend on office | | | | for finding contract work. Another option is to use |
| supplies, phone calls, and anything else related to | | | | freelancing resources. |
| job expenses. Also keep a log of the amount of | | | | |