Topic ID #3080 - posted 9/15/2007 12:54 PM
grabast
How much does it cost to work?
grabast
I have worked many years as an employee. I don't anymore. I really enjoy the independence of contracting or working short-term gigs. I like working this way for many reasons, but working this way successfully requires a person to be careful about what they accept and what it cost.
Most people are concerned about how much a job pays, rather than how much a job cost. Generally, we think this issue is important only the CRM contractor. What is often not considered, regardless of IRS opinion, is the fact that individually we are each contractors. The CRM company contracted the overall job, but I contracted to do a piece of that job for x dollars per hour. I think everyone knows that the CRM company has certain costs, wage, insurance, equipment and the such. But few employees consider their cost associated with working. So the answer to this question is critical to the broader issue, that is: How much did I make?
If at the end of the month, I've deposited a paycheck, paid the bills, replaced/repaired damaged tools, bought groceries and have nothing left, then I made nothing, and simply traded a month of labor for month of life and the privilege of being taxed for it.
Whether you are a project contractor or an employee, analyzing job cost should be a critical step before accepting a job or project, especially if it is likely to be followed by a short unemployed period while you are searching for your next job. Most people, particularly young folks, consider a job offer in simple terms. Such as, the job pays x, my rent is y, so I'll make z dollars. Of course, that is over simplified.
I would like your Ideas, opinions and assessment on this topic. I think the discussion might cause many of us to reconsider accepting some part-time jobs. Here is a scenario:
You live in an apartment in San Jose, California. The rent for your 1-bedroom apartment is $900 per month. You drive a financed 2005 Jeep Wrangler. You are offered a six-week job in the Sierra foothills, 45 miles southeast from Fresno, California (the nearest town). The job offers $12.50/hour plus $45/day per diem. You must drive to a remote base camp in the Sierra foothills where you will remain for the next six weeks (with weekends free). You must provide all of your own camping equipment and food. Each day you will drive your 4WD vehicle 15 – 20 miles for which you are compensated at .485 per mile.
How much does this job cost you?[/list]
Most people are concerned about how much a job pays, rather than how much a job cost. Generally, we think this issue is important only the CRM contractor. What is often not considered, regardless of IRS opinion, is the fact that individually we are each contractors. The CRM company contracted the overall job, but I contracted to do a piece of that job for x dollars per hour. I think everyone knows that the CRM company has certain costs, wage, insurance, equipment and the such. But few employees consider their cost associated with working. So the answer to this question is critical to the broader issue, that is: How much did I make?
If at the end of the month, I've deposited a paycheck, paid the bills, replaced/repaired damaged tools, bought groceries and have nothing left, then I made nothing, and simply traded a month of labor for month of life and the privilege of being taxed for it.
Whether you are a project contractor or an employee, analyzing job cost should be a critical step before accepting a job or project, especially if it is likely to be followed by a short unemployed period while you are searching for your next job. Most people, particularly young folks, consider a job offer in simple terms. Such as, the job pays x, my rent is y, so I'll make z dollars. Of course, that is over simplified.
I would like your Ideas, opinions and assessment on this topic. I think the discussion might cause many of us to reconsider accepting some part-time jobs. Here is a scenario:
You live in an apartment in San Jose, California. The rent for your 1-bedroom apartment is $900 per month. You drive a financed 2005 Jeep Wrangler. You are offered a six-week job in the Sierra foothills, 45 miles southeast from Fresno, California (the nearest town). The job offers $12.50/hour plus $45/day per diem. You must drive to a remote base camp in the Sierra foothills where you will remain for the next six weeks (with weekends free). You must provide all of your own camping equipment and food. Each day you will drive your 4WD vehicle 15 – 20 miles for which you are compensated at .485 per mile.
How much does this job cost you?[/list]
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