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I would like to know the benefits or the down side of working as a CONTRACT as against say a FULL TIME PERMANENT or PART-TIMER or a TEMPORARY Worker in any of the Canadian Provinces?
Please somebody throw some light on this
With the contract you are looking for a new job when the contract is up.
Usually you dont receive any of the company benefits if you are on contact.
If there is any seniority involved within the company the contractor wont be a part of it.
Basically you'll be a hired outsider until your contract ends.
Not much security for the future.
Thanks Jambo101 for the reply.
But what about the taxation? I heard one doesn't need to pay any tax at all? Is it TRUE?
Also it's seems one is paid higher when working as a contract employee?
Is it worth going in for a contract employee than as a full time permanent employee?
You still have to pay income tax - it's just not deducted by the employer. You also have to register to collect GST and add GST to your bills. Put your estimated taxes & GST aside and pay quarterly. You will also have to pay both the employer and employee portion of Canada Pension Plan contributions. The upside is that you can deduct expenses to reduce net income but if you are sitting a desk at the employer's office (as opposed to working from a home office) you will have limited expenses to deduct.
One major factor on the downside will be that, as a self-employed individual, you'll also be required to pay both the employee and employer portion of Employment Insurance contributions if you decide to enroll in that federal program.
If you don't enroll, you will not have recourse to Employment Insurance payments or programs if you suddenly find yourself without a contract and unemployed.
Think about it -- if an employer is telling you it's such a great deal to be a contract worker, why is he telling you that? It couldn't possibly be for the employer's benefit, could it?
Also it's seems one is paid higher when working as a contract employee?
You definitely should get paid more as a contractor as your pay should make up for the benefits you don't get as a permanent - paid sick days, paid vacation & public holidays, etc. When I lived in Vancouver I quit my permanent position and then worked contract afterwards. My hourly rate was almost double as a contractor. I loved it but then I wasn't worried about job security and my spouse's job came with the medical, dental and other benefits.
Quote:
Originally Posted by kchakus
Is it worth going in for a contract employee than as a full time permanent employee?
It may. Sometimes employers hire contractors to "try before they buy". The company I worked for in Vancouver did that, as they do here in Australia. It's easier to cancel your contract if you don't work out than get rid of a hopeless permanent employee. It's a gamble but if it's all you can get and you need the money, why turn down a contract job?
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