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Working as consultant after 3 years as an employee

By brh356 ·
I have been asked to go part time (4 hours a day), for a lower wage (accounting and payroll), the other 4 hours in the day, they want to pay as a I.T. contractor from my own company which I will have to set up. Legally I see a problem with this as I have done extensive project and support work over the last couple of years as an employee. To me this is the biggest issue, as government would look at this as being an employee/employer relationship.

Anyone out there have experience with this type of situation and give examples?

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Yes

by santeewelding In reply to Working as consultant aft ...

I do have direct experience in this. No, I will not provide incriminating examples.

I side with your alarm bells going off. The company is trying to have it both ways -- both dicey (assuming you are in the U.S.).

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Yup...

by AnsuGisalas In reply to Working as consultant aft ...

It's not a nice move.
Check out your benefits as a contractor.
Check out also, how is your work time tallied?
Being myself a one-man company freelancer, I can tell you that there's a lot of things that differ detrimentally from a employee status.

On the other hand, I can charge VAT from my employers, hand it to the state, and then get it back the next fiscal year because I don't hit the VAT income limit... my de facto hourly rates sometimes approach a hubdred dollars (sadly then it's only for a ten-minute period, not the whole hour) but I'd rather have the income that exceeds the VAT limit of course.

Just keep in mind the complexities. And start a job-search right away.
But if you're in any way interested in doing consulting, then weigh that in too.
But decide carefully.

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okay

by asuvlumuzi In reply to Working as consultant aft ...

who in government doesn't have a company chasing after government tenders? I would say its a question of ethics

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Missed that aspect...

by AnsuGisalas In reply to okay

If there's some kind of government subsidy or tax break reason for this behavior, be on the safe side.
Check your labor union. You do have one, right?
Or check if the governmental agency involved has a advisory function for people wanting to check out the legality of something beforehand. They could even have a FAQ... but that depends on a lot of things.

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Thanks

by brh356 In reply to Working as consultant aft ...

I would like to thank all of you who responded. It helped solidify the alarms going off. I do have plan B's in place as the Government WEB site has stated FAQ's (I looked up late today) that pertain to this issue that make this a very problematic situation for me.
Thanks again!

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*ahem*

by AnsuGisalas In reply to Thanks

Sorry to inconvene... if you found a response to be helpful, you should press the "mark as helpful" button below it. It's polite, free, and makes the "thank you" feel even more heartfelt :)

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I'll twist your words a bit

by NexS In reply to *ahem*

<i>"It's polite, free, and makes the "thank you" feel even more <b>thumb</b>felt"</i>

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