From September 2008 to March 2010, contract work increased by 2%, part-time employment increased by 16%, while temporary, permanent and full-time employment decreased significantly (-19%, -36%, -4%). Read on to explore why a software development contract might provide you with safer and smarter careers.
The contractor work of the software engineer has many advantages over permanent positions, though it has disadvantages. Here are some of the contractual work that can help you determine if it is right for you:
Money – Generally pay is better than permanent positions with less cost for the employer .
Flexibility – Since you do not have to spend your weekly hours without paying an hourly fee. In many cases you are in your own time. The acquisition of contractual positions also allows you to develop several different projects with different companies.
Experience – Contract work allows you to gain experience and training in several different fields of expertise. This may be a great rebuild, but you do not want to select a job hopper, so concentrate on certain concentrations.
Work From Home – Many contract employment opportunities work from home. While some employees feel that they need a structured environment, many people like free home work (and the benefits of gas savings). If you work from home, you are entitled to a tax deduction for a home office.
Tax Benefits – Entrepreneurs may claim reimbursement of deductible costs. Make sure it keeps track of the amount of money you spend on office supplies, phone calls, and other labor costs. Also, keep track of logs to travel in your car to get to work contract and contract, as this is another deductible cost.
Disadvantages of Contract Work:
Less Favorable – This is not always the case if you find a generous company that is willing to negotiate your contract terms.
Uncertainty – During the economic downturn, the average job seeker sought primarily workplace stability. Now that things are eased, contract work recovers its desirability for those who enjoy the benefits.
Taxes and health insurance – Although full-time employees pay taxes on taxes, entrepreneurs need to provide their own taxes. Entrepreneurs are responsible for paying self-employment tax on social security and Medicare. They are also responsible for the payment of estimated taxes, which consists of self-employment and income tax in quarterly installments, depending on what is expected during the year.
Contract work can be very useful to some, while not meeting others. As much of the software development is project-based, many people can conveniently use this position type on site. In many cases, software development contract work will be the most sensible choice for those in the industry and I highly recommend that you experience it at some point in your career. It can always be used as a gateway to a permanent position and is a great way to see if the company is right for you. Always remember that more than 70% of contractual jobs turn into permanent positions, so they have a good chance of opening opportunities on the road (Source: IBISWorld).
Job placement agencies are often a good resource for finding contract work. Another option is the use of freelance resources.