8 Pros and Cons of Software Engineer Contract Work You May Not Be Aware Of

Contractual work as a software developer offers many advantages over permanent positions, but also has disadvantages. Here are some features of contract work that can be used to determine if it's right for you or not:

Specialists under contract:

Money - In general, the salary is better than permanent jobs because the employer has less overhead.

Flexibility - Because you are paid every hour, you don't have to exceed your weekly hours. In many cases you are at your own pace. If you have contractual functions, you can also work on different projects with different companies.

Experience - contract jobs enable you to gain experience and training in various areas. This can be a great resume builder. However, you want to avoid being flagged as a job hopper. Therefore show a certain focus in certain areas.

Working from home - many contractual employment opportunities are working from home. While some workers may feel the need for a structured environment, many like the freedom of working from home (and the benefits of gas savings!). If you work from home, you may be able to apply for a tax deduction for a home office.

Tax deduction - Entrepreneurs can claim tax-deductible operating expenses. Make sure to keep track of all office supplies, phone calls and everything else related to labor costs. Also keep track of the mileage you drive to and from your contract work as this may be another deductible expense.

Counterwork of the contract:

Less benefits - This is not always the case if you find a generous company ready to negotiate the terms of the contract.

Uncertainty - During the economic downturn, the average jobseeker mainly sought job stability. After the situation has calmed down, commissioned work is again interesting for those who benefit from it.

Taxes and Health Insurance - Although full-time employees receive tax deductions from their salaries, entrepreneurs must provide their own taxes. Entrepreneurs are responsible for paying the self-employment tax, which covers social security and health insurance. They are also responsible for paying the estimated taxes, which consist of the self-employed and income tax, in quarterly installments, depending on what they expect in the year.
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