Since there is a hiring freeze at work, I have to move to working through a consulting company. I think that I will be going through
coradix. From what I have found out, they have a lot less overhead compared to
other companies. So, I don't have to get incorporated or anything, all I need to do is get a GST number and then I'll be working as a "sub contractor". That's the plan at least. Now I have to do other things like get some form of
health plan. This looks like a
good resource.
Now (following like 6 people's advice) I just have to open up a separate bank account so that I set aside enough money for taxes and other big ticket items. I think that I should actually sit down and plan out a budget so I can make sure I'm moving in the right direction. That and see if I am paying off my car too fast / slow, buying too much "stuff", etc.
Listening to: The Bloodhound Gang - Magna Cum Nada
So, because of this hiring freeze, the government is not allowed to spend money to actually hire someone, yet, they are allowed to spend money to hire contractors, at a probably higher rate then what it would cost them to just hire them in the first place. Don't you just love the government.
ReplyDeleteYes, but there's one way that it makes sense: it's easy to get rid of a contractor -> you just don't extend the contract. It's really hard to get rid of an employee.
ReplyDeleteThis allows the gov't to be a bit more flexible. And there are other costs when you make someone an employee than take home pay (like EI, health care, sick days, holidays, ...)
Exactly. Full timers cost the government much more than contractors. Because of the contracts and the union that full timers are in, it's hard to get rid of them in a pinch.
ReplyDeleteAs well, contractors don't get a lot of the perks that full timers do, which is why they get a higher rate of pay.
There are a whole bunch of things missing: benefits, vacation pay, job security. The last one is the biggest of course, and it usually means that consultants make 10-20% or more than full timers. The uncertainty about the job means they get paid more ... contractors can usually be let go at any time. I used to call it "danger pay" ;).