sjl333 wrote: ↑Sun Mar 03, 2019 4:33 pm
Nathan Drake wrote: ↑Sun Mar 03, 2019 4:07 pm
I don't fully understand - as a W2 contractor you don't get benefits and must pay 6.5% social security tax. Are you saying that the headhunting firm is providing that cost? Healthcare, paid time off, social security, unemployment insurance/disability, these are all large costs that you would then have to incur yourself. You also haven't mentioned any COL adjustments that need to be made (state income tax, increased COL, etc).
The job market right now is hot, which is recency bias. If the job market fails to be hot, then you will be the first to let go and it may be difficult finding a job. As I understand it, you would also not have unemployment.
The job W2 job doesn't seem to be that great of an increase over your current role, and much less security. I'd pass.
This is all incorrect.
I do not need to pay 6.5% social security tax. job shop pays all of that.
Everything you stated is incorrect.
Job shop pays healthcare, PTO, SS, and all company benefits.
If you do not believe me, that is fine. There is no reason to lie about all of this.
My dad has been doing this for 20-30 years in the industry - and he has showed me his pay stubs and everything. So ya...anyhow, I do not need to explain myself on this matter any further.
It's not that I don't believe you. You just haven't given everyone all the facts to make an accurate comparison.
So you are getting paid $100/hour, and none of the aforementioned benefits come out of that hourly rate -- they are all in addition to your hourly rate? Please provide comparisons of current company vs. new W2 offer:
- How does the 401k Match, PTO, insurance costs (since this is typically not fully covered by an employer), all compare?
- Do you not receive any potential bonus and/or RSUs at your W2 job, what about your current job?
- Where is the location of the new job versus your current job?
There's also the downside of no potential upward mobility in a W2 role, you're just a hired hand and won't be given the best projects/assignments in a leadership role.
I work in the Aerospace Industry, am a few years older, make a similar income to your current job, but live in a low COL area. I've had potential offers in both California and Maryland, but refused them all because taxes and increased cost of living would more than make up the difference and I'd be able to save far less per year. On track to FIRE in my late 30s - technically already FI, but don't want to be lean FIRE, and don't want to stop working anytime soon. After working in the industry for so long I am valuing more the security, working relationships, and projects than simply trying to increase my income. There is a limit to how much you can be paid as a technical worker/manager and I'm probably approaching that without making the move to a far more political role, which doesn't interest me (due to lack of security).
You have to make apples to apples comparisons. Everything is relative and it's not just purely about the total $$$.