Ask HN: Independent contractor software engineers
5 comments
When I was freelancing before I owned my consultancy, my basic rules to keep it clear:
1. I set my hours.
2. I don't work on-site but may on occasion for deployments or times where it would be of benefit.
3. I use my own equipment (computer etc).
4. I pushed hard to have work carved out and I self managed my schedule and deliverables. So I didn't "report" to their PM/dev lead for direction, but only to help coordinate work and make sure we were on track and aware of any changes that might affect either side etc.
I never had any issues doing it this way, but I had a few employers that refused to work with me because of it. They said I had to use their equipment and be integrated to their team. Which at that point I knew I wouldn't be independent, so I refused for personal reasons, mostly because I wanted to control my schedule. But it also benefited me since it could have "defined" me as an employee and then I would have been way overpaying taxes.
From what I understand it is fairly low risk for the "contractor", even if they get reclassified other than overpaying taxes. From what I understand it is more an issue for the employer, any information to the contrary?
1. I set my hours.
2. I don't work on-site but may on occasion for deployments or times where it would be of benefit.
3. I use my own equipment (computer etc).
4. I pushed hard to have work carved out and I self managed my schedule and deliverables. So I didn't "report" to their PM/dev lead for direction, but only to help coordinate work and make sure we were on track and aware of any changes that might affect either side etc.
I never had any issues doing it this way, but I had a few employers that refused to work with me because of it. They said I had to use their equipment and be integrated to their team. Which at that point I knew I wouldn't be independent, so I refused for personal reasons, mostly because I wanted to control my schedule. But it also benefited me since it could have "defined" me as an employee and then I would have been way overpaying taxes.
From what I understand it is fairly low risk for the "contractor", even if they get reclassified other than overpaying taxes. From what I understand it is more an issue for the employer, any information to the contrary?
Here is the Microsoft case which was a corner stone to the contractor vs employee debate:
http://corporate.findlaw.com/human-resources/employee-or-ind...
http://corporate.findlaw.com/human-resources/employee-or-ind...
If you're in the U.S., here's some information from the Department of Labor about employee vs. contractor classification (PDF):
http://www.dol.gov/whd/regs/compliance/whdfs13.pdf
http://www.dol.gov/whd/regs/compliance/whdfs13.pdf
This. In the U.S. there is a bright line test. That said, many, it is common to see startups and early stage companies skirt these regulations.
Judging by what I see in London, I'd say in most cases it's mostly law/tax evasion scheme that's beneficial for both sides.
In Denmark you are protected/seen as an employee after 12 months of freelancing if you mainly work for one company.
Let's assume all replies are for entertainment, not for advice, and discuss the law without everyone saying to talk to your lawyer.