Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I am being contracted through a contractor (that means I'm subcontracted, right?). Does this mean that I have to worry about my own income taxes? What about Soc Security and those "other things" that were always witheld for me by my hourly employers?

Are most contracts paid at point of delivery, or is there a week or two lag time after delivery to point of payment?

Do most contractors just budget really really well week-to-week during jobs and between paychecks, or is there something else there I'm missing?

Hi Becky!

Currently, I, too, am working for a contract house. Technically, your employer is the contract house, which must withhold the usual taxes, such income tax, social security, medicare, etc., from your paycheck that any regular company would withhold. I have heard that one can contract directly with companies, that means NO contract house and conceivably more money for you, and in that case I don't know what would happen. I would make withholding taxes part of the deal in that case.

When one gets paid is up to the contract house. Some pay every two weeks and some pay every week after delivery of services. Either way, it's like having a part-time job, so budgeting your income is a must.

I know that in the Twin Cities area, there is little time between assignments. Talk to the contract house. You are a client as much as the company you will be working for.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.