It occurs to me that I haven’t talked about contracting.  This is a very important aspect of the job search, especially if you’re in IT.  So, I’ve decided to do a 3 part series on contracting this week and next.  We’ll start today with common questions regarding contracting; to be followed by considerations one should make before contracting; and finally a post on what it means to be a Sole Proprietor.

If you’ve never done contract work, it can be a little confusing.  Here are some common questions professionals might ask regarding contracting.

What is a Contractor?

A contractor is someone who does work for a client as defined by a contract.  That’s it.

In the professional world, many times companies need workers for only a specified period of time.  In these cases a company may choose to hire an individual as a contractor.  Generally, a term is specified in the contract.  The most common lengths of time are 3 months, 6 months, and 1 year.  I would say 6-month contracts tend to be the most popular right now in the Triangle in IT.

What is a Contracting Agency?

There are 2 main ways a company may find contractors:

• Directly
• Through a Contracting Agency

Directly means that the company in need of a contractor uses their own resources (HR people, Managers, etc.) to find a candidate for the contract position.

Some companies like to use Contracting Agencies.  Contracting agencies generally do the recruiting and screening for a company prior to an interview.

What is the difference between Permanent Employment and Contracting?

There are several differences:

1)   Permanent Employees are harder to fire, whereas Contractors can be let go in accordance with the contract (many times with no notice.)

2)   Permanent Employees get benefits from the Company.  Independent contractors must take care of their own benefits.  Contractors through Contracting Agencies are sometimes offered benefits through the Agency.

3)   If you are an independent contractor (meaning you don’t contract through an agency) there are tax implications.

Check back next week for the second article in this series!