So you keep hearing that if you could do a 1099 (US Record of payment for labor) you could be taking home more money for your jobs.
This is true, but not without some effort. I will be discussion in the next few posts on going from employee, to contractor, to vendor as a project manager providing professional services.
In some ways there is very little difference but in others, it is a major change from status to status. Where you are in your career and life journey may dictate one option over the other.
For the sake of a foundation, I am using
- Employee – to describe a person who is receiving a paycheck directly from an employer with taxes already deducted and in some cases union dues and insurance, generally paid weekly, starting in 7-14 days
- Contractor – a person who is receiving a paycheck from a agent or agency that is representing an employer which may or may not have deductions, generally paid weekly, starting in 7-14 days
- Vendor – may also be labeled as a supplier that sends an invoice to the employer or agency for labor and may not be paid for 10 to 30 days
I will cover my journey to be an independent consultant in future posts. For now, consider your move and do some investigation of your own into moving from employee to vendor.