Question about compensation

[DarkHumour]

No matter how you slice it or dice it, they will pay between $40 and $45 per hour.

the client cannot guarantee even 40 billable hours

 In your situation, it's tied to the number of hours that you work.

Does any borker ever do per diem correctly ? It should NEVER, EVER be done this way.  If you're out of town you should get per diem every day, even weekends when you do not work.

This has denial after the fact if the borker is caught.  Forget this gig.

The only way it could be worse is if they make you clock in and out repeatedly during the day or its a "pay by the ticket" arrangement (what a scam that job opportunity was).



DarkHumour

PS.  I have noticed more corp to corp / 1099 stuff on Dice.  I used to think it was to allow small independents to work but now I figure it is just to save money and to accommodate a slow or non paying client.

[unix]

No matter how you slice it or dice it, they will pay between $40 and $45 per hour.

the client cannot guarantee even 40 billable hours

What the hell is that about? What happens if the client only has 10 or 20 hours per week?

They say it's 'full time'. The above  was my conjecture, not from the borquette.   I mean to say that the client can cut you after a week or two. They cannot guarantee you 40/hour * 2000 hours per year.  The hourly rate is just that --- hourly.  It  does not translate well into an annual salary.

I 'get' the point about per diem, smells like a major scam going on here, that I am going to drop.  I don't want to deal with them under any circumstances.

[Richardk]

PS.  I have noticed more corp to corp / 1099 stuff on Dice.  I used to think it was to allow small independents to work but now I figure it is just to save money and to accommodate a slow or non paying client.

If I'm reading you right, the corp to corp is between you and the broker. I used to always prefer that arrangement but have now flipped to W2. Suddenly it's not my problem if the client is paying slow or not at all; I'm on the payroll and expect to be paid on time.

I still consider corp to corp if the rate difference is too much or if it's a gig with considerable deductible expenses where I'm not directly reimbursed. Otherwise with lower overall rates and slow paying clients, why should I take the risk when I can push it back onto the broker?

[TRexx]

Does any borker ever do per diem correctly ? It should NEVER, EVER be done this way.  If you're out of town you should get per diem every day, even weekends when you do not work.

I received per diem pay several times when I was salaried employee of a consulting company and they sent me to  Some Far Away City for a project that lasted 3 - 9 months.  The choice was mine - I could keep track of every penny I spent and submit the receipts, or I could accept the IRS approved per diem rate for that city. In every case the per diem rate was better.  Either way, I always received a separate expense check and the dollars never showed up on my W2.  The only tax issue was if I was out of state then our payroll folks withheld income taxes for that state instead of New Jersey.  Then I had to file a return for that state in April.

In most cases I came home every weekend, but if I had to stay over, I still got the per diem.

We also had a bunch of non salaried folks on the payroll. When we sent them to remote project we handled it exactly the same way, but usually we tried to recruit someone local.

 

[DarkHumour]

PS.  I have noticed more corp to corp / 1099 stuff on Dice.  I used to think it was to allow small independents to work but now I figure it is just to save money and to accommodate a slow or non paying client.

If I'm reading you right, the corp to corp is between you and the broker. I used to always prefer that arrangement but have now flipped to W2. Suddenly it's not my problem if the client is paying slow or not at all; I'm on the payroll and expect to be paid on time.

Yes.  I would only consider corp to corp directly with a client.  The *ice jobs are with a borker in the middle.  W2 at least gives you some legal recruiter stomping if they get funny about not paying you on time or not at all.  It is bad enough that a middleman can lie limitlessly to both sides in arranging the deal and then weasel out of paying the consultant.

(aside)Maybe they figure that the consultant can't afford filing a lawsuit to enforce the contract terms.

Hey. Has anyone on here ever had to do that and succeed ?
(end aside)

I still consider corp to corp if the rate difference is too much or if it's a gig with considerable deductible expenses where I'm not directly reimbursed. Otherwise with lower overall rates and slow paying clients, why should I take the risk when I can push it back onto the broker?

Exactly.  It still amazes me the sh*tty way they weasel out of paying per diem. 

DarkHumour

[codger]

DH wrote "Maybe they figure that the consultant can't afford filing a lawsuit to enforce the contract terms."

Bingo!    Can't afford the $$$ or the time to fight with them.

With C2C, the consultant has no real leverage other than that which he pays  for. (Attorney) That's why the client (who arm wrestles with the consultant over every comma of their agreement) immediately ignores it once work has begun. They know that you won't fight for your hard-won, contractually agreed upon rights. And they're usually right.

[Richardk]

A tangent but if anyone has some insight perhaps we can start a new thread.

The only tax issue was if I was out of state then our payroll folks withheld income taxes for that state instead of New Jersey.  Then I had to file a return for that state in April.

I've seen companies do the above but I've also seen companies simply base everything out of your home state. You were being paid for your work out of the office in state 1 even though you might physically be in state 2 or 3. Kind of like a traveling salesman (though that's more recurring) that has clients in two or three states. So I wonder which is correct or is it based on the length of time or what?

[TRexx]

A tangent but if anyone has some insight perhaps we can start a new thread.

The only tax issue was if I was out of state then our payroll folks withheld income taxes for that state instead of New Jersey.  Then I had to file a return for that state in April.

I've seen companies do the above but I've also seen companies simply base everything out of your home state. You were being paid for your work out of the office in state 1 even though you might physically be in state 2 or 3. Kind of like a traveling salesman (though that's more recurring) that has clients in two or three states. So I wonder which is correct or is it based on the length of time or what?

As I understand the law, you are responsible to pay taxes in the state where you earned the money. That's why professional athletes have to file taxes in every state where they play games.  Of course it's well worth the effort for Massachusetts to go after Derek Jeter every time the Yankees visit Fenway Park.  Not so much when I make a one day trip to Boston.

Some states have reciprocal agreements.  New Jersey residents who work in Pennsylvania pay New Jersey taxes. Likewise Pennsylvanians who work in New Jersey.  The assumption is that an equal number of people cross the river each way so things even out.  Not so with our neighbor to the east.  New York (City and State) demands their pound of flesh.  They even tax out of state residents at a rate based on the entire household income, not just that of the person actually working in New York.

I remember doing some big projects for Dupont in Wilmington, Delaware. Even though we ran the project from our office in Philadelphia and most of our troops lived in Pennsylvania or Southern NJ, and commuted daily,  Dupont demanded that everyone pay Delaware taxes.