Contract positions often sound like a dream true. And it’s not hard to know why; with flexible hours and the promise of working for yourself, contract positions offer a challenging, yet appealing career path. However, there are three things you need to know about contract positions before you accept a formal offer:
1. Read the Fine Print
Consulting contracts will make your head spin, but you must read them carefully to understand what they contain. The contract should detail all the relevant information you should know, including salary, payroll schedule, logistics, and what happens if either party breaches your contract.
A document called a “statement of work” should accompany the contract. This document lays out the project in its full scope. It should include all of your goals and responsibilities such as deliverables, time-frame, milestones, due dates, budget, and any other details that will impact the work you do. If you work with a company like Pinnacle they can help you sort through contracts and paperwork to make sure you understand your obligations and that the onboarding process goes smoothly.
2. Think about Your Finances
Contract work comes with some financial considerations that create more work and expense for you. Instead of receiving a paycheck with your federal and state taxes neatly calculated and taken out, you receive checks based on the price you negotiate with the client. This means you’re responsible for paying your own taxes – state and federal you’ll have to calculate taxes yourself or hire an accountant to do so.
If you plan on being a full-time contract employee, it’s best to put money aside for expenses an employer normally pays; that includes health insurance premiums and a retirement fund. Pinnacle allows our contractors to keep full-time benefits, even between contracts, so they never have to worry about coverage.
3.Examine Your Work Style
Are you a person who thrives on teamwork? Are you a little shy? Do you like routine? Contract work may not be the best option for you. While some people thrive on the change of pace and the new challenges that each new company brings, not everyone does. It’s important to understand what environments help you thrive and how you work with others before you accept a position as a contractor.
Empower Your Career with Pinnacle Contract
If contracting sounds like a good fit for you, reach out to the recruiters at Pinnacle Accounting and Finance: our team has years of experience that will put you on track for success. If you would like to learn more, please contact us at 412-343-6300 or email@example.com.