Quantcast
Quantifying Benefits for Contractor vs Employee - Page 2 - Beyond.ca - Car Forums
Page 2 of 7 FirstFirst 1 2 3 ... LastLast
Results 21 to 40 of 125

Thread: Quantifying Benefits for Contractor vs Employee

  1. #21
    Join Date
    Sep 2012
    Location
    Calgary, AB
    Posts
    1,655
    Rep Power
    89

    Default

    I shove all my receipts into monthly folders and I try to make sure I use only my CC to buy company stuff so that I have only one thing to pay off every month.

  2. #22
    Join Date
    Jul 2010
    Location
    Homeless
    My Ride
    Blue Dabadee
    Posts
    10,041
    Rep Power
    100

    Default

    Quote Originally Posted by suntan View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Most people can't handle being a contractor. Too much paperwork and the temptation to spend all your pre-tax money is too great.

    On that note I really need to get back to my accountant on some paperwork.
    You only have to do that if you have material expenses to write off. I would argue that most people massively overestimate the value of these.
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.
    Quote Originally Posted by Yolobimmer View Post
    This quote is hidden because you are ignoring this member. Show Quote

    guessing who I might be, psychologizing me with your non existent degree.

  3. #23
    Join Date
    Sep 2012
    Location
    Calgary, AB
    Posts
    1,655
    Rep Power
    89

    Default

    I do buy some computer stuff, mileage, cell phone, office 365, some other things. I think it saves me about $200/yr lol.

    Mostly I keep the company because virtually all places refuse to deal with sole proprietorships.

  4. #24
    Join Date
    Jan 2008
    Location
    Upstairs
    My Ride
    Natural Gas.
    Posts
    13,933
    Rep Power
    100

    Default

    pretty easy to write of a few thousand bucks worth of expenses
    Quote Originally Posted by JRSC00LUDE View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Pizza preferences are more polarizing than politics.

  5. #25
    Join Date
    Sep 2012
    Location
    Calgary, AB
    Posts
    1,655
    Rep Power
    89

    Default

    You have to depreciate most assets which puts a crimp in the pre-tax savings.

    The CRA wanted me to CCA a fucking mouse. I told the guy I was talking to to shove it. He let me expense it all in one year.

    The govt is best.

  6. #26
    Join Date
    Jan 2019
    Location
    The Big Char.
    My Ride
    *The First*
    Posts
    4,453
    Rep Power
    100

    Default

    So lemme play Devil's Advocate, here.




    If 40% is the number, who would be prepared to drop the contract where they were at about $200k and take a salary of $143k with benefits? Would that feel like a no-brainer decision?

  7. #27
    Join Date
    Sep 2012
    Location
    Calgary, AB
    Posts
    1,655
    Rep Power
    89

    Default

    Yup. Because if you were to lay me off in a couple of years that sweet sweet severance + possible EI.

  8. #28
    Join Date
    Jul 2010
    Location
    Homeless
    My Ride
    Blue Dabadee
    Posts
    10,041
    Rep Power
    100

    Default

    Quote Originally Posted by ThePenIsMightier View Post
    This quote is hidden because you are ignoring this member. Show Quote
    So lemme play Devil's Advocate, here.




    If 40% is the number, who would be prepared to drop the contract where they were at about $200k and take a salary of $143k with benefits? Would that feel like a no-brainer decision?
    As long as there was a healthy opportunity for performance incentives above that salary it’s not necessarily a bad deal.

    There is more to it than blue cross premiums and a parking allowance.
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.
    Quote Originally Posted by Yolobimmer View Post
    This quote is hidden because you are ignoring this member. Show Quote

    guessing who I might be, psychologizing me with your non existent degree.

  9. #29
    Join Date
    Feb 2005
    Location
    calgary.ab.ca
    My Ride
    E90M3 510 Wagon
    Posts
    8,104
    Rep Power
    74

    Default

    Some of these benefits are a fixed cost… so as compensation increases the percentage will decrease… (employer paid ei, cpp, etc)


    A big one is paid days off… 3-5 weeks vacation plus flex days/PLDs… easily at 6 weeks+, then ~2 weeks worth of stats… bonuses, even at a conservative 10% of salary already puts the premium for employees at 25%+ alone… oh and don’t forget a minimum of 5% rsp matching… so 30% plus ~$15k for health benefits and cpp/ei premiums (employer paid part)
    Last edited by ercchry; 10-21-2021 at 11:25 AM.

  10. #30
    Join Date
    Apr 2004
    Location
    Calgary
    Posts
    2,093
    Rep Power
    44

    Default

    Quote Originally Posted by ThePenIsMightier View Post
    This quote is hidden because you are ignoring this member. Show Quote
    So lemme play Devil's Advocate, here.




    If 40% is the number, who would be prepared to drop the contract where they were at about $200k and take a salary of $143k with benefits? Would that feel like a no-brainer decision?
    Yes especially if there is a bonus component to salary. Even a modest 10% bonus gets you to 157, then add in benefits that you no longer pay out of pocket, paid vacation, retirement savings contributions, you’re pretty close to 200 anyways.

  11. #31
    Join Date
    Jan 2008
    Location
    Upstairs
    My Ride
    Natural Gas.
    Posts
    13,933
    Rep Power
    100

    Default

    Quote Originally Posted by ThePenIsMightier View Post
    This quote is hidden because you are ignoring this member. Show Quote
    If 40% is the number, who would be prepared to drop the contract where they were at about $200k and take a salary of $143k with benefits? Would that feel like a no-brainer decision?
    Yes.
    Quote Originally Posted by JRSC00LUDE View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Pizza preferences are more polarizing than politics.

  12. #32
    Join Date
    Oct 2003
    Location
    Calgary
    My Ride
    ute
    Posts
    4,972
    Rep Power
    100

    Default

    Quote Originally Posted by ercchry View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Some of these benefits are a fixed cost… so as compensation increases the percentage will decrease… (employer paid ei, cpp, etc)


    A big one is paid days off… 3-5 weeks vacation plus flex days/PLDs… easily at 6 weeks+, then ~2 weeks worth of stats… bonuses, even at a conservative 10% of salary already puts the premium for employees at 25%+ alone… oh and don’t forget a minimum of 5% rsp matching… so 30% plus ~$15k for health benefits and cpp/ei premiums (employer paid part)
    What are paid days off?

  13. #33
    Join Date
    Sep 2012
    Location
    Calgary, AB
    Posts
    1,655
    Rep Power
    89

    Default

    These days, every day!

  14. #34
    Join Date
    Mar 2010
    Location
    Calgary
    My Ride
    Ioniq 5
    Posts
    1,877
    Rep Power
    50

    Default

    Everyone keeps talking about the benefits of being an employee but seems to be ignoring the benefits of being a contractor. Being about to deduct quite a few things along with splitting profits across future years has a fair bit of value. IMO the gap is def less than 30% figure some people throw around.

    All things being equal if you got a 20% bump to switch to contractor you'd probably finish the years ahead all things being equal. Though contractors tend to be the first chopped so there is the job security aspect and why some people expect a larger margin.

    (Depends on the companies bonus structure though, obviously if you get a huge yearly bonus that's quite different situation)

  15. #35
    Join Date
    Jul 2010
    Location
    Homeless
    My Ride
    Blue Dabadee
    Posts
    10,041
    Rep Power
    100

    Default

    Going from being an employee to a contractor. In the same job. Same position. Same company.

    There are next to no legitimate business expenses in such a scenario.

    Change my mind.
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.
    Quote Originally Posted by Yolobimmer View Post
    This quote is hidden because you are ignoring this member. Show Quote

    guessing who I might be, psychologizing me with your non existent degree.

  16. #36
    Join Date
    Sep 2012
    Location
    Calgary, AB
    Posts
    1,655
    Rep Power
    89

    Default

    Other than buying a computer, maybe Office 365 and your own email domain not much else.

  17. #37
    Join Date
    Jan 2019
    Location
    The Big Char.
    My Ride
    *The First*
    Posts
    4,453
    Rep Power
    100

    Default

    Quote Originally Posted by killramos View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Going from being an employee to a contractor. In the same job. Same position. Same company.

    There are next to no legitimate business expenses in such a scenario.

    Change my mind.
    Couldn't you claim your mileage as an expense to get to your employer's site/office/UnderDesk?

  18. #38
    Join Date
    Mar 2011
    Location
    Calgary
    Posts
    315
    Rep Power
    16

    Default

    Quote Originally Posted by ThePenIsMightier View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Couldn't you claim your mileage as an expense to get to your employer's site/office/UnderDesk?
    Not if you go to the same place every day.

  19. #39
    Join Date
    Jul 2010
    Location
    Homeless
    My Ride
    Blue Dabadee
    Posts
    10,041
    Rep Power
    100

    Default

    Quote Originally Posted by suntan View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Other than buying a computer, maybe Office 365 and your own email domain not much else.
    If your employer doesnt provide these things that cost almost nothing.

    - - - Updated - - -

    Quote Originally Posted by lasimmon View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Not if you go to the same place every day.
    This
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.
    Quote Originally Posted by Yolobimmer View Post
    This quote is hidden because you are ignoring this member. Show Quote

    guessing who I might be, psychologizing me with your non existent degree.

  20. #40
    Join Date
    Sep 2012
    Location
    Calgary, AB
    Posts
    1,655
    Rep Power
    89

    Default

    Yup, you might save $200 on your taxes.

Page 2 of 7 FirstFirst 1 2 3 ... LastLast

Similar Threads

  1. Contractor health benefits

    By 03ozwhip in forum Society / Law / Current Events / Politics
    Replies: 11
    Latest Threads: 09-13-2021, 04:21 PM
  2. New job, can work as temp employee or contractor, which better?

    By cidley69 in forum Real Estate / Finance
    Replies: 92
    Latest Threads: 08-26-2019, 12:13 PM
  3. Full time employee to contractor

    By Manhattan in forum Careers
    Replies: 39
    Latest Threads: 09-15-2013, 09:39 AM
  4. contractor vs. employee

    By fraction in forum Real Estate / Finance
    Replies: 23
    Latest Threads: 05-07-2010, 06:44 PM
  5. I dont have employee benefits!!

    By blueripper6 in forum General
    Replies: 6
    Latest Threads: 02-24-2007, 06:57 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •