Working with Independent Contractor Agencies

While getting on your feet as an independent contractor, you may want to accept contract job assignments from agencies until you can become truly independent. But agencies might withhold taxes and take other deductions from your paychecks, depending on your working relationship with them. Agencies will also charge you a finder's fee, charge companies a markup, or both, which will cut into your pay.

For example, an agency might pay you $30 an hour while charging the company $60. $30 an hour may be more than what you were making as a permanent employee, but you have to consider your increased expenses as a independent contractor, if the agency doesn't cover them. In the absence of an agency, you could be collecting the entire $60 and allocating it as you wish.

On the other hand, if you don't have the resources and client base to become instantaneously self-employed as an independent contractor, then agencies might be the way to go for awhile. Landing contract jobs right away may help you to network, earn referrals, and build a client base to strike out on your own sooner. Some agencies offer benefits and training or share the expenses with you, too.

You'll be more of a temp employee than an independent contractor in this case, but at least you'll be one step farther from permanent employee and one step closer to independent contractor.

Back to Page 1 > About Working as an Independent Contractor
Page > 1 • 2 • 3 • 4 • 5

Job Searching: Technical supports Equal Opportunity Employment.
Copyright © 1999, J. Steven Niznik. All Rights Reserved.