In simple terms, freelancers are independent workers who use their skills and experience to work with multiple clients and take on various projects without committing to one employer or company. This enables them to work as much as they want for the rates that they deem fair for their abilities. However, it also means that they are responsible for figuring out their own tax obligations and for finding their next jobs , usually using a freelancing platform. Companies that offer full-time permanent employment opportunities usually have set structures, hierarchies and rules.

Now that we’ve gone over all of the benefits of working as a contractor in the life sciences industry, let’s take a look at some of the downsides. As a contractor, you have the power to charge more than you would if you were employed by an organization. This is because contract employee vs full time you are responsible for setting your rates and deciding how much your work is worth. This can be effective to earn more money over the course of your career. One of the advantages of W2 employees is that they tend to create a sense of community within the workplace.

More Upskilling Opportunities

For example, if you have to pay a full-time employee $5,000 per month, but you have to hold 15.3% of FICA taxes, then you would only cut them a check for $4,335 every month. Contract employees are responsible for paying their taxes on their own. The U.S. Chamber of Commerce notes that independent contractors may be compensated per hour, per project or can even be paid a flat fee after the work is completed. Additionally, the source notes that the contractor is responsible for paying their taxes, including self-employment tax. Contract workers must always be searching and preparing for their next position.

Independence – In a part time employment, I mentioned that you get a «sense» of independence. Full independence in choosing your own health benefits, retirement fund, and how much you want to set aside for your vacation. I personally like it because I get to set aside my 20% for emergency fund, 10% for retirement and the leftover for our Europe post-pandemic trip. Skills Diversification – Specialization is something that companies likes to provide to you for easier progression and role placement.

Lack of Benefits

Maybe its because I used to be a Personal Trainer, but I feel that it is fair for an employee (full-time, part-time or contract) to get paid for every hour they work. If I work more hours to contribute something outside of my role, I want to get paid for the hours worked. This also means that the hours worked are of greater value, meaning I will maintain high productivity within the 8 hours in my day so that I won’t need to work after hours or weekend family time. If you are looking to grow your family, or your own emergency fund, contract employment allows you to get a bigger paycheck than your FTE counterpart.

Contracting helps people diversify the type of projects they work on and builds their skill sets. Independent contractors may be compensated per hour, per project or can even be paid a flat fee after the work is completed. Closely behind flexibility, she notes the ability to work with other clients and do different projects and try different things as your schedule permits is also a huge benefit. Being a full-time employee of a company, big or small, means that you are part of a team – and being a part of a team is fun!

Onboarding and training

Many job seekers find that the advantages of contract work are worth the risk. Contracting not only provides great experiences to include on a resume. It can also help expand a candidate’s network to find future opportunities.

contract position vs full time