I am a software developer and I have been working for more than 12 years as FTE (except a short period of 3 months when I was incorporated about 2 years ago) in the industry.
Now mainly for tax reasons I might turn back to contract positions. And I thought to ask your opinion about this. Does that make sense financially?
I am assuming my current employer won't be able to convert my FTE to contract. Correct me if I am wrong, but I think CRA won't like this conversion and I am not even sure that under labor laws they can do that even if it's mutually agreed between parties.
So I think I will have to look for contract positions in the market.
What experience do you (if any) have with working as contractor as software developer or similar? Tax wise? I know FTE gives some stability or so, but I am not worried about this, for skills and experience of mine I should not have issues of finding a contract.
I reached a level of salary under FTE where I find very little financial motivation to move forward, for every dollar added to my salary I am taxed at about half rate now. Will converting to contract ease this or software developers still do not have the same flexibility as house salespersons.brokers, construction industry self employed people and so?
What's the general rule of calculating my contract rate based on my current yearly salary rate. Say if my salary is 120 K should I ask 60 $/hr, 70? 80? how much is reasonable ? Don't want to ask less and also do not want to ask more and look unprofessional.
And in general any thoughts, suggestions.
Now mainly for tax reasons I might turn back to contract positions. And I thought to ask your opinion about this. Does that make sense financially?
I am assuming my current employer won't be able to convert my FTE to contract. Correct me if I am wrong, but I think CRA won't like this conversion and I am not even sure that under labor laws they can do that even if it's mutually agreed between parties.
So I think I will have to look for contract positions in the market.
What experience do you (if any) have with working as contractor as software developer or similar? Tax wise? I know FTE gives some stability or so, but I am not worried about this, for skills and experience of mine I should not have issues of finding a contract.
I reached a level of salary under FTE where I find very little financial motivation to move forward, for every dollar added to my salary I am taxed at about half rate now. Will converting to contract ease this or software developers still do not have the same flexibility as house salespersons.brokers, construction industry self employed people and so?
What's the general rule of calculating my contract rate based on my current yearly salary rate. Say if my salary is 120 K should I ask 60 $/hr, 70? 80? how much is reasonable ? Don't want to ask less and also do not want to ask more and look unprofessional.
And in general any thoughts, suggestions.