How to approach this with my boss

OriginalGriff

Carefull! Check Taxes etc: there are good reasons why contractors are paid more than employees! Remember (in the UK): Holiday pay, Sick pay, employer National Insurance. Also remember extra costs: heating, lighting, electricity, computer upgrades, backup systems, physical space, travel to meetings, accountant, pension. Its's worth bearing in mind that you need to be sure that they will give you enough work to keep you busy, but that you need to find other sources quickly - a company with only one client is often known as "bankrupt". Whatever guarantees they give you are as good as the paper they aren't written on. I'm not saying it's a bad idea: but it is not one to jump into at all. [edit]I forgot pensions :doh: [/edit]

Real men don't use instructions. They are only the manufacturers opinion on how to put the thing together. Digital man: "You are, in short, an idiot with the IQ of an ant and the intellectual capacity of a hose pipe."

Lutoslaw

It dependes on how team cooperation works. If there is a lot of talking then remoting yourself could degrade performance. If you make a call then somebody should answer it. And if you stood over somebody's shoulder and ostentatiously wait then he would surely do what you want him to do. PS. Get marryied. It is cool to say "me and my wife" ;)

Greetings - Jacek

Dalek Dave

You mean outsourcing your job for a much higher rate surely? He saves money having you off the books as an employee. 1)Because he saves on Employers Class 1 National Insurance, currently 12.8% of your salary, so on a salary of £40000pa he would save £5120pa. 2)He no longer covers holidays and sickness, he only pays for worktime. Between £3500-£4500 pa. 3)Redundancy cover. Should he not need you he just says piss off mate I haven't any work. Redundancy cover is about £8000 So he would need to pay you a lot more for you to cover this, and he would still make a saving. You make money as a contractor. 1)You charge more per hour for the job. 2)You can control when tax is paid and become tax efficient by using an accountant. 3)You can take on other tasks and contracts as they arise. I can offer a full advice service on this if you like, and I am not too expensive.

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Simon P Stevens

I'll echo what OriginalGriff said. There is a good reason contractors are paid a lot more and that is because they are personally taking the hidden costs that business would pay for permanent employees. If I was to consider this I would be planning to *increase* my rate (probably by quite a lot). Despite the increase to what I actually recieve, it would still result in a net decrease for the employer because they wouldn't be paying all the taxes/pensions/holiday/etc any more, I'd be paying them. One of the benefits you could use to try to sell this idea to your boss is the option of reduced hours when they are quiet. (Which like you say, gives you the freedom to start finding other contracts) (You probably want to be set up as a company. If you are even slightly unsure what you are doing make sure you get yourself a good accountant to handle the paperwork and tax returns for you)

Simon

OriginalGriff

Jacek Gajek wrote:

PS. Get marryied. It is cool to say "me and my wife"

You don't know the OP is male (could be an ugly striking woman) - or that the partner is of a different gender. I don't either, but... :laugh:

Real men don't use instructions. They are only the manufacturers opinion on how to put the thing together. Digital man: "You are, in short, an idiot with the IQ of an ant and the intellectual capacity of a hose pipe."

Dalek Dave

Most partners are of a different gender, even in same sex relationships.

------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC League Table Link CCC Link[^]

Simon P Stevens

You seem to be rather expert in a particular area that I may have a need for Dave. Would you mind if I dropped you a email tonight with a few brief questions? [Sorry to be mysterious for everyone else reading this, it's nothing exciting, I just might need an accountant and it's probably better I don't discuss details on a public forum ;) ]

Simon

Dalek Dave

Absolutely fine. I shall be at home all evening, so ask away. If I can help, I am happy to do so.

------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC League Table Link CCC Link[^]

Maximilien

bad idea ... never tell your boss you want to work for less money !!!! EVER!!!

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Simon P Stevens

Thanks.

Simon

crocks256

I might msg you too Dave once I get my head together a bit more on the ins and outs of this.. As it stands, I may have some firm additional work as well waiting in the wings..

crocks256

I agree (ironically) but overall, its less Cost to him rather than less money for me from what I am seeing.

-------------------------------------------------- John Crocker

moon_stick

Maybe I should get in too before DD hikes his rates!! :)

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Lost User

bearing in mind that the actual costs of employing you as a FTE may be up to 2.5 times your salary, I wouldn't suggest a reduction in pay at all, as by contracting you will reduce the costs immediately (they save in all the resources you'd normally use, any payroll tax, superannuation etc. depending on your local laws) and you lose by no longer having paid leave - If you work (say) 200 days per year then your daily rate needs to be 1/200 your required income. And you need to add on any superannuation contributions you may be required to make, and insurance you may need, etc. depending on the boss, I'd make it seem like his idea... you know. "Hmmmm, if only there was some way of reducing my costs to the company" "Pity we couldn't find a contractor with my knowledge of the systems" etc.

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Maximilien

Yeah, maybe, but how will you profit by helping your boss make more money? will he raise your salary in the future ?

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Joan M

Following the others comments (who are more than right) you could propose to stay at home and to continue receiving money from the company. You could reduce a little bit your current salary as you stay at home and you are not moving yourself each day to the company. HTH!

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PIEBALDconsult

That's what my last employer did when they laid me off. As my project was in maintenance mode with ever fewer bugs to remove and features to add they decided that they didn't need to keep me on for forty hours a week. But certainly not at a lower hourly rate, at a higher one, I just worked many fewer hours for them.

crocks256

My Salary here hasnt rose for 3 yrs.... Pay freeze and all that. I have also had no pension contributions for that period as well.

Ger Hayden

Very, but you loose your employment protection.

Ger

Ennis Ray Lynch Jr

Until your boss realizes he can then outsource to India and multiply you by 3! Also, don't forget to check out my contractor rate calculator. (Search the web, I am number one on Google, usually) It will tell you what to charge,.

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