Independent contracting vs staffing agencies
November 26, 2012 9:47 PM Subscribe
I'm thinking of moving from a contract with a staffing agency to an independent contract. What are the benefits or drawbacks I might have to deal with? I know taxes are different and I'm planning to invest in some software to help with quarterly taxes. I'll be in the same position at the same company, but I'll be representing myself and a staffing company won't get a cut.
posted by lockstitch to Work & Money (5 answers total)
I work at a very large company which hires out many contractors through various staffing agencies. They also give the option for contractors to represent themselves, but it's not something I've looked into before now.
I recently found out that the staffing agency who my contract is through takes a higher cut of my paycheck than others; this means I make several dollars less per hour than people who have just been hired with less experience. Frustrating!
My options, as I see them, are to switch to a different staffing agency for the remainder of my contract (several months), or go to an independent contract and deal with my own taxes.
Since insurance isn't an issue, I'm really wondering what the benefit is either way. As far as I can tell, the staffing agency is really not benefitting me at all. What's good or bad about independent contracting? What would be the point of staying with an agency?