Find out more about the differences between contract and full time work

Not to mention, you’ll have the freedom to choose which projects you want to take on, setting your own schedule in the process. In a contract role, you’re not often held to a set schedule like a full-time employee. Contract positions are especially appealing to those who are caregivers, people who have multiple jobs, or those who just want a greater sense of contract vs full time work-life balance. Additionally, contract workers are unable to receive benefits including health, dental and life insurance. Their self-employment taxes are also given a 1099-NEC form during tax season, rather than a W-2 form that part-time and full-time employees receive. As a recruiter, your role is to show candidates the advantages of contract work.

This can mean forgoing health insurance, 401k contributions, paid time-off, parental leave, disability benefits, and more. Contract employees must cover these types of costly expenses on their own. When an individual works for an employer full time, they typically have a fixed schedule and working hours. They also enjoy employee benefits such as paid vacation time or sick leave, retirement benefits, health insurance, life insurance, and more.

The IRS test for classifying employees

Reach out to our engineering staffing agency or speak with one of our IT recruiters. On the flip side, you are generally paid more on the contract due to the lack of benefits received. If you work on a 1099 basis you are responsible for paying your own taxes when tax season arrives.

The concept of leaving a full-time position for contract work might seem foolish and irresponsible. Obviously, one of the main perks of working full-time is having a steady paycheck and sense of security from your job. Wondering what the differences are between contract, part-time and full-time workers? Contracting not only provides great experiences to include on a resume.

Payment, taxation and benefits

Many freelance independent contractors work part-time or non-traditional hours, and most work for more than one client at a time. Putting together the right team when you’re starting and growing a small business can be a daunting task.

• Initially, contractors that are still trying to “get their name out there” and grow their business won’t really have this commodity.
• Just be careful once tax season comes around – many workers fail to realize that companies tend to cover half of your tax benefits, so you will likely pay a higher rate.
• If they look at contract staffing with an open mind, candidates may be surprised at the opportunities available.
• The good news is that, whether you choose contract or full-time employment, there are plenty of opportunities in the IT industry waiting for you.
• You never know what permanent roles they may be hiring for, and your current position allows them to see all the skills you could bring to a role.
• Good Company Entrepreneurs and industry leaders share their best advice on how to take your company to the next level.

Working as a W-2 employee the staffing agency pays you an hourly rate, takes out your taxes and you should be eligible for unemployment benefits when the assignment ends. Full-time workers have a unique set of protections under the law, and therefore hiring a contract worker may be ideal depending on your company size and goals. Contractors are great for specific tasks that may not be needed indefinitely, but are necessary for things like a strategic pivot, a design overhaul or a seasonal marketing campaign. With contract and freelance jobs on the rise around the world, it is important to understand the difference between these options and regular “full-time” employment. There are some important trade-offs, both as an employee looking for a job and an employer looking to hire. It is essential that you understand the differences before hiring/applying for a job. Independent contractors, however, pay their own travel costs (and earn enough on the overall project that those costs end up being covered by the fee they’re paid).