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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.

Scott
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