The Hidden Costs of Going Freelance

snydeq writes: IT pros lend firsthand advice on the challenges of going solo in Bob Violino's report on the hidden costs of going freelance in IT. 'The life of an independent IT contractor sounds attractive enough: the freedom to choose clients, the freedom to set your schedule, and the freedom to set your pay rate while banging out code on the beach. But all of this freedom comes at a cost. Sure, heady times for some skill sets may make IT freelancing a seller's market, but striking out on your own comes with hurdles. The more you're aware of the challenges and what you need to do to address them, the better your chance of success as an IT freelancer.'

Comments

Re:IT workers shouldn't freelance

[AK Marc]

And I've had programmers take down a 1000+ user network by "testing" by turning on a test network, where it mimicked the real environment, down to the IP addresses and such. Of course, they didn't tell anyone else in IT what they were doing, and they had admin access to the networking gear because the CIO was ex-programmer and programmers are the best IT workers.

Of course, when the calls were rolling in that the network was down, I got in trouble for unplugging their test gear. Programmers are best when contractors. They roll in, give you buggy code, and wander off. You don't have to keep them on the payroll.

Re:60% tax

[tompaulco]

You automatically rank in the highest tax category as a freelancer. Of every buck you make, 60 cents go to the state.

You are automatically in whatever income bracket your income qualifies you for, just like anybody else.

You have to keep your own pension in mind, and let us face it, most programmers are not that good at selling themselves. While exceptions are there, once you start as a freelancer, you might start to appreciate those pesky sales droids a lot more.

Pension? BWAHAHAHA. Oh, thank goodness the company has my back. Yeah, right! These days, when you work at a company, you ARE an independent contractor. There is no pension. There is no retirement unless you are paying into it yourself (and they might match you for a few percent). As soon as they can find somebody that they think can do your job for a nickel cheaper, you are out the door. There is no loyalty from the company, but if you aren't loyal to the company and not willing to work 12 to 16 hour days every day, then you are "unprofessional". If you don't give two weeks notice, you are "unprofessional". But they can walk you out the door at a moment's notice, and that is supposed to be okay.