Wednesday, June 27, 2012

Temp and Contract Jobs

If the employment market has got you down, one way to stay busy and to enhance your prospects for a permanent job is to work through a temporary agency. The link above has suggestions for ways you can get your temp work to convert into something better.

See also the related links at the bottom of the article:
  • No Luck In The Job Search? Consider Temp Work
  • Turn Your Seasonal Gig Into A Full-Time Position
  • Five Steps To Securing A Temp Job
A few things to understand about the difference between temporary employment and contract work, since agencies may want to blur the distinctions:
  •  An agency may skim up to 50% off what the hiring company pays you. They likely will not disclose the amount to you. However, if your temp should go permanent, be aware that you can likely ask for about 25% more than you are getting from the agency. Why the discrepancy (where's the other 25%)? Because the company pays the agency not only what you're worth, but for the agency's services in screening you, and assumes the risk if you turn out to be a turkey.
  • Contract work differs from temp in that it may or may not involve an agency. If you're a contract worker, you likely do not work 35+ hours a week; some taxes will not get withheld from your paycheck. This may seem great (more money for me!), but you will probably be obliged to file quarterly estimated taxes with the IRS, and you will be liable for both your own and your "employer's" contributions to Social Security. In other words, less money for you, and potentially some legal hassles down the road. Check with a tax preparer if you're not sure what you're getting into!

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