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I'm being considered for a couple of contract jobs out of my state.
They both offer W2, but my rate would be all inclusive. I guess the contracting agency can do what they want, but I thought that all-inclusive rates only applied to 1099 contractors. I would expect as a W2 contractor, my rate would be the base rate PLUS expenses. My understanding is W2 contractors are paid less than 1099 because the agency pays the taxes, whereas 1099 is responsible for their own taxes and expenses.
Anyone heard of this? I just want to make sure I don't get taken advantage of.
Though I hate to put it in quite this way, "It depends."
First Fact: If you are to be paid on a W-2 basis, you are an EMPLOYEE. In the situation you described, your employer will be the agency, not the company where you'll be working. Therefore, take a close and critical look at your contract with the agency. Don't waste your time on the contract between the agency and the company (even if the agency will let you see it, which they probably won't) because it has little relevance to you.
Second Fact: Be sure that your contract with the agency spells everything out in detail -- what constitutes reimbursable mileage, and at how many cents per mile, etc.? Do reimbursable expenses include incidentals such as parking, tolls, etc.? How about airline (or rail, or bus) travel, hotel accommodations, meals, etc? If so, are there any CONDITIONS or LIMITS? What are the DETAILS of said payments?
Though I hate to put it in quite this way, "It depends."
First Fact: If you are to be paid on a W-2 basis, you are an EMPLOYEE. In the situation you described, your employer will be the agency, not the company where you'll be working. Therefore, take a close and critical look at your contract with the agency. Don't waste your time on the contract between the agency and the company (even if the agency will let you see it, which they probably won't) because it has little relevance to you.
Second Fact: Be sure that your contract with the agency spells everything out in detail -- what constitutes reimbursable mileage, and at how many cents per mile, etc.? Do reimbursable expenses include incidentals such as parking, tolls, etc.? How about airline (or rail, or bus) travel, hotel accommodations, meals, etc? If so, are there any CONDITIONS or LIMITS? What are the DETAILS of said payments?
Right. The agency is paying me the all-inclusive rate, so I would be responsible for my travel expenses. I don't know what agreement they reached with the client. But I would think that as a W2 contractor, or employee of the agency, they would pay or reimburse the expenses.
They don't reimburse; the rate includes the travel (hotel, lodging, meals) expenses. For example, if they paid me $80 all inclusive, the $80 includes what I would use for travel. So if it costs me $1000 a week for travel expenses, I'm truly getting paid $55 and hour. So really to maximize my rate I would need to find some cheap travel somewhere or I would be using all my extra money on travel.
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