Contracting

[dubinamerica]

Hi
I may be taking up a contract position in IT with a company in Dublin - this is being advertised as senior software engineer. Any pointers as to how rates are decided - is it per day per hour etc ? Do contractors get paid for bank holidays or is it just tough luck that month and you're down a day ? Also - I presume that there are normally no benefits such as vacation, pension, health but does anyone have any info on this ? Is it possible for contractors to join the group health scheme but pay for the cover them selves? Any info on current rates in IT would be extremely helpful also . Also - if it's already being advertised for a certain rate is the employer obliged to meet that rate as long as you have all the required experience etc? Thanks !

 

[D8Lady]

This is a year out of date but is usually cited as a standard.
http://www.rescon.ie/salarysurvey.htm

You will need more information on the type of contract you are going for. Some are a daily rate (you will need your own or an umbrella company), some are pro rata (a set salary & benefits for a specified period of time). Know what you want - many items are negotiable.

 

[dubinamerica]

This is a great site !! Thank you for sending this on . If anyone has any other pointers regarding this whole area I would appreciate it . Specifically the following
- negotiating , best ways to present this - i.e. good idea to reference sites such as this one with survey?
- for taxes - if this is going through a recruitment company will they sort out taxes ?
- for returning emigrants it sounded like there may be some tax breaks for contracting - anyone experience of this ?
- how soon should an accountant be brought in and where to find a good one?
- is it possible to obtain a mortgage while contracting and any pointers on this area ?

Thanks again so much . We're up to our eyes right now with our imminent move back home. Any more pointers on this would be appreciated.

 

[Bootdog]

Dubinamerica,

You should look up [broken link removed]

This is an accounting firm that deal with contractors, I have used them for several years. As far as I know:
- you'll get paid per hour/day worked
- no holiday or sick pay (but a higher rate takes accounts of this)
- no other benefits unless they are offered / negotiated
- generally if you are responding to an ad, you'll get minimum other benefits, but if a company headhunts you, you are in a better position to negotiate for example on relocation costs, temporary accomodation etc.
- recruitment companies normally bow out once you start work, but this can vary
- you'll therefore need an accountant to sort out your taxes and pay etc.
- this can take some time, so if you are not able to survive for 2-3 months on your own, have an accountant lined up very early
- mortgages tend to be very tricky for contractors, banks don't like the short-term uncertainty of contract work, the company linked above can help with this though - through mortgage brokers they work with.
- changes to the health sector mean that there is currently little benefit to joining a group scheme. I chose to book online and get the same discount as group scheme with the VHI (10% discount). A lot of professional associations offer health group discounts as well.
- if you don't know what you're getting into, I can recommend handing it all over to the above company, they can offer a "full service" and take all tax/pension/health issues off your hands ... you send in a timesheet, they lodge cash into your account.
- it may be worth looking at offshore options if you are considering moving outside of Ireland permanently in the future, there are certain tax benefits to this, and I have heard of people doing it for a year or two before relocating to Australia or America.
<seeing as you're called dubinamerica, and not americanheadingtodub, this option may not be for you >

As for rates, I found the below link full of (not necessarily useful) information:
[broken link removed]

 

[dubinamerica]

Thank you both for the feedback on this. I have just accepted a contract offer in Ireland : ) I am in the process of moving back and am surrounded by boxes as I speak ..Will be off line for some time I think and will also need a new name to reflect the change "dubindublin" .. Thank you again for this !