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FutureMon
Ach Du Lieber
Premium,ExMod 2002-05
join:2000-10-05
Seaside, CA
reply to FutureMon

Re: Getting laid....off.

Possible 6+ month gig in Plano, TX.

$65/hr corp-to-corp.



dogma
XYZ
Premium
join:2002-08-15
Boulder City, NV
kudos:1

1 edit

If you relocated to Plano, you would probably never come back. No State income taxes there. You could probably satisfy your IRS debt and put a healthy down payment on a house with just the $$$ made in 6 Months.



bobrk
You kids get offa my lawn
Premium
join:2000-02-02
San Jose, CA

You could probably find the same job here, too. I don't know how the Southland is doing, but I get email all the time asking if I'm interested in changing employment.



TheRul
Why Not You?
Premium
join:2007-09-18
Gilroy, CA
kudos:1

I was seriously looking into Texas.
But it will be a great culture shock, but it is a lot cheaper to live. If I remember the research $65 in So cal ~ 75 to 85 in most areas of TX. It will be a tough decision
--
»So the holidays are on us again...



bobrk
You kids get offa my lawn
Premium
join:2000-02-02
San Jose, CA

I'd rather live in Gilroy than Texas.



TheRul
Why Not You?
Premium
join:2007-09-18
Gilroy, CA
kudos:1

Personally, me too. I love it here. I consider myself very lucky, and if I could get futurmon a gig here, I would be happy to.
--
»So the holidays are on us again...



brian
Premium
join:2002-05-02
Lake Forest, CA
reply to FutureMon

said by FutureMon:

Long Beach to Irvine isn't going to be the funnest commute

I work with several people that do the LB to Irvine commute and they say it's not that bad - depending on when you go.
--
flickr gallery | photo blog (rarely updated) | play mafia!


dogma
XYZ
Premium
join:2002-08-15
Boulder City, NV
kudos:1
reply to FutureMon

Hey, Buddy of mine called from Dallas a little earlier. I think I had mentioned him some time ago here. He had been laid off and out of work for 11 Months. He found another full-time position/job last June at about 29% less than he made before...but it was as a civilian employee of the DoD.

You guessed it. They gave him his walking papers today.



sholling
Premium
join:2002-02-13
Hemet, CA
kudos:1
reply to FutureMon

From Lifehacker: A guide to giving up your day job. Just something to dream about once you're in that next 9-5.

»lifehacker.com/5707473/the-minim···um=email
--
"Government is the great fiction, through which everybody endeavors to live at the expense of everybody else."
--FREDERIC BASTIAT--



FutureMon
Ach Du Lieber
Premium,ExMod 2002-05
join:2000-10-05
Seaside, CA
Reviews:
·Suddenlink

2 edits

1 recommendation

reply to dogma

Lake Oswego, OR

MS Access -> Sql Server migration

6 - 12 months. $58/hr corp-to-corp

This type of thing is right up my alley... Got me an 11:15am monday morning telephone interview set up. Potentially followed by a face-to-face within a few days of that.

Good thing I know a couple people who live in Portland. Might be able to rent a room from 'em...

- FM
--
This just in from the department of redundancy department...



TheRul
Why Not You?
Premium
join:2007-09-18
Gilroy, CA
kudos:1

tell Pope Dave I said hi.



FutureMon
Ach Du Lieber
Premium,ExMod 2002-05
join:2000-10-05
Seaside, CA

Who's Pope Dave?



TheRul
Why Not You?
Premium
join:2007-09-18
Gilroy, CA
kudos:1

that is an offline story. Funny, I thought I had already told you. I will tell you later.
--
»So the holidays are on us again...



FutureMon
Ach Du Lieber
Premium,ExMod 2002-05
join:2000-10-05
Seaside, CA
Reviews:
·Suddenlink

1 edit

Lake Oswego gig. Not sounding too workable.

Payment terms - net 30. So I probably wouldn't see any money until the end of February unless I get them to agree to let me invoice them weekly starting in January

They did agree to split the costs of air fare/hotel/rental car for the interview - and if I get the job I can reimburse them the difference. That'll run about $200 for my half initially ($400 in total for air fare, hotel and rental car for 1 day)

They wanted me to also pay around $100 for my own background check, but I got them to cover the costs of that if it comes down to it.

Plus I gotta cough up another $500 to reinstate my corporate $1mm liability insurance.

So just to do this, it'll cost me $500 up front (missed days pay at current client plus half trip expense), then if I get it, another $700 to pick up the remainder of the trip expense plus the insurance policy.

If I had backup funds it wouldn't be such a big deal but I don't

Just sent them an email indicating that it would simply be too costly initially for me to be able to consider the position - and if they had any way to assist I was open to suggestions. I did find a room for rent for $425/month, but I'd have no money to secure it in the first place.

- FM
--
This just in from the department of redundancy department...



FutureMon
Ach Du Lieber
Premium,ExMod 2002-05
join:2000-10-05
Seaside, CA
Reviews:
·Suddenlink

1 recommendation

Drool...Drool...

They got back to me with an alternative.

$50/hr on W2, with $100/day per-diem and full health bennies @ $100/paycheck. That means I'd be on a standard 2 week payroll schedule with my 1st check arriving on Jan 21st. No liability insurance required and no background check expense.

So I told 'em to move forward with it that way...

- FM
--
This just in from the department of redundancy department...



dogma
XYZ
Premium
join:2002-08-15
Boulder City, NV
kudos:1

Is the guaranteed term the same? 6 Month minimum? Is it a project that potentially can last longer? What happens after the initial term? What is the possibility of a permanent position? You need to review their "health bennies" carefully. Can you remain on the health bennie program afterwords? When is the per-diem paid? Does the per-diem include weekends? Can you work weekend hours?



FutureMon
Ach Du Lieber
Premium,ExMod 2002-05
join:2000-10-05
Seaside, CA
Reviews:
·Suddenlink

Term is still 6 months, possible extension to 12 months, possible conversion to perm after either term (they said they generally convert 30% of their contractors whenever it is they decide to do that).

They've got several openings, any of which I could do - but they're targeting the one specific one with the caveat that I could be leveraged to assist with the other ones if needed. The agent said he thinks I've got an 80% chance of having an offer made just off our earlier conversation.

The agent also said they pay 75% of the benefits, which would cost me about $100 per paycheck (so, $2600/year).

I'm assuming since I'd be W2, standard Cobra would apply if the contract ended and I haven't converted to permanent.

I didn't ask about the per-diem specifics, but I will. I'm assuming it would be in the form of a monthly reimbursement with a form I would file, and I will also ask about the per-diem on weekends; but I wouldn't honestly expect that. I mean, up to $2000/month assuming 20 work days is a pretty darn good "extra". Per-diem expires after 6 months (He said it was a Oregon state thing).

Even if I couldn't take advantage of the full $100 per day it should be plenty enough to pay for a suitable rental room or apartment plus food (and maybe even gas plus rental car). I would want to factor in the full months rent by dividing the monthly amount by 30 or 20 depending on if they covered weekends or not - so the full amount would still come out of the per-diem. $500/month is $16.66 on a 30 day split or $25 on a 20 day split.

- FM
--
This just in from the department of redundancy department...



Waldothe3rd
Premium
join:2009-02-16
Sun N Sand
reply to FutureMon

The Portland area is a very nice area to live - very happening city with a nice rhythm. Lots of Tech there as well so if your gig did end, chances are you could pick something else up. Seems like you just moved here, but good luck with the in-person interview.



FutureMon
Ach Du Lieber
Premium,ExMod 2002-05
join:2000-10-05
Seaside, CA
Reviews:
·Suddenlink

Yes I've visited out there on several occasions and I did like it. I was born and raised in So. Cal - only moved to Colorado in late '07 to end up moving back to CA in July of '09.

I wish it wasn't so far from family and friends, but I've gotta do what I've gotta do to make ends meet.

- FM
--
This just in from the department of redundancy department...



ohdan

join:2008-11-10
Adelanto, CA
reply to FutureMon

I have taken action and shown my approval for the post. Congrats!



FutureMon
Ach Du Lieber
Premium,ExMod 2002-05
join:2000-10-05
Seaside, CA

1 recommendation

Next up: 10:30am Thursday phone interview. If it goes well they're going to want me in a face-to-face on the following Monday.

- FM
--
This just in from the department of redundancy department...



dogma
XYZ
Premium
join:2002-08-15
Boulder City, NV
kudos:1

Wow, that's great news.



TheRul
Why Not You?
Premium
join:2007-09-18
Gilroy, CA
kudos:1

yea you.



FutureMon
Ach Du Lieber
Premium,ExMod 2002-05
join:2000-10-05
Seaside, CA
Reviews:
·Suddenlink

4 edits
reply to dogma

Hey help me out on the per-diem thing.

Just learned a little more about it.

They said my wage would be split as follows - I'd get $32/hr (taxable) + $18/hr (non-taxable per-diem).

That changes things quite a bit.

After figuring in all relevant payroll taxes and such, at a $50/hr rate with no per-diem I end up with $5589/mo NET (assuming a combined 35.5% tax rate)

Using the $32/hr taxable rate plus the $18/hr non-taxable rate it ends up being $3743 after tax (32.5% combined) plus $2880 non-taxable for a total of $6623/mo

Sure, it's about $1034 more per month than going with no per-diem at all - but my expenses could be more than that.

I've asked them to tell me if it's an accountable or non-accountable plan.

Assuming lodging, food and rental car [if rental car is even claimable--hard to get a good answer on that one].

Expenses would be $1770 alone for a $59/day rental car for the full month.

I guess the biggest benefit is that, annualized, my actual taxable income would be $104000 with no per-diem, or $66560 with the per-diem. So my tax liability would be either $19189 at the non-per-diem plan, or $9431 with it.

Using my combined tax calculations, I'll have paid in $33,800 in taxes after 12 months on the non-per-diem plan.

Figuring in per-diem, I'd have paid only $21632 over the course of the year.

non-per-diem @ $104k taxable: 33800 - 19189 = $14611 refund
per-diem @ $66k taxable: 21632 - 9431 = $12201 refund

It's confusing as heck and starting to make me think I should just forget about the per-diem.

I mean if it's going to cost me $1700 for a rental car, and $500 for a small apartment, that brings the actual combined net down to something like $25/hr. Not really worth all the hassle and possibly not enough to actually cover all my other regular expenses.

Guess I'll have to fly back down after I get established and drive my car up there...but I wanted to keep my car local so I'd have something here for when I visited on weekends.

ALL OF THIS ASSUMING I ACTUALLY GET THE GIG.

- FM
--
This just in from the department of redundancy department...



dogma
XYZ
Premium
join:2002-08-15
Boulder City, NV
kudos:1

You're right. Complicated. Lemmie stew over it. However you will need to consult a real tax professional at some point.



FutureMon
Ach Du Lieber
Premium,ExMod 2002-05
join:2000-10-05
Seaside, CA
Reviews:
·Suddenlink

I'm really really thinking about telling them I just accepted another gig to walk away from this one.

After doing more calculations, I'd be roughly in the same financial situation I am now, but having had to leave all my family behind (including my daughter going to live with her mom 6 months earlier than planned).

I originally thought the per-diem was on top of my rate - not built into it, and the per-diem pay WOULD all be taxable if the IRS chose to deny my itemizations - leaving me in even worse shape.

- FM
--
This just in from the department of redundancy department...



Waldothe3rd
Premium
join:2009-02-16
Sun N Sand
reply to FutureMon

That per-diem would cover the low-end stay...
Assuming a 40 hr week $18 x 40 = $720
ExtendedStay hotel = $294/wk
Enterprise rent-a(cheap)-car = $150/wk
Meals = 280 / wk
As you can see, it won't go very far...



FutureMon
Ach Du Lieber
Premium,ExMod 2002-05
join:2000-10-05
Seaside, CA
Reviews:
·Suddenlink

1 edit

Right - and then my true rate is actually $32/hr - which is less than I'm making right now and just getting by.

I'd have to give up my CA apartment, and then I'd be at risk of not qualifying to itemize the per-diem stuff in the first place.

Although I was looking at an apartment for $595/mo - half the price of the extended stay price you quoted. But that's still not enough to make it a "I'd be stupid not to take it" deal.

Plus I did some research on the company, and apparently it was founded by ex-Enron executives... who then ended up in a scandal around April 2009 with the new company...resulting in their entire financial consulting arm ultimately dropping off the map...

- FM
--
This just in from the department of redundancy department...



dogma
XYZ
Premium
join:2002-08-15
Boulder City, NV
kudos:1
reply to FutureMon

Here is the IRS's Max Per Diem for Oregon area's. »www.gsa.gov/portal/category/100120

A.) A self-employed person can only use per diem for the meal costs.

B.) per diem rate can be used for the combined costs of Lodging and M&IE. However, the rates vary depending
on location. Use the rate for the area where your contractor spends the night. The rates for the different cities are available in IRS Publication 1542.

C.) Thus, as a 1099 guy, you are self-employed, and thus whatever they give you (except maybe meal cost) needs to be reported:
Your need to report the income earned (including per diem) and reimbursements on Schedule C as INCOME.

You then deduct the expenses you incurred as deductible expenses.

The difference is your net income, which is subject to income taxes at your marginal rate and the self-employment tax (whatever that is now) , which is calculated on Schedule SE.

Simple Example:
@ $50/hour x 40/hours/week x 50 weeks/year = $100,000.00
Deduct business expense (say $1500/mo x 12 = $18,000) $100K - $18K = $82K in taxable gross income that transfers to your 1040. You can then apply normal itemized deductions like the kid and head of house hold and whatever else. Lets say this totals $12,000. So now your taxable income is ($82K - $12K) $70K. Your head-of-household fed taxes would be $12,359, leaving you with $57,641.

But...it doesn't stop there. Remember, you are self employed and need to pay for your own social security/FICA, etc. That may run another 9% - 13%, or another $10K or so kicking your take home to $47,641.

It's important to point out that your living cost have been paid already in the Oregon 1099 scenario. So look at your current situation. look at your current take home pay. Remember, you are spending x amount of that to pay for your apartment, car, food, transportation, etc.

Lets say you are bringing home $60,000...BUT, of that bring home pay you pay ($1200/Mo x 12) $14,400/year for rent + ($400/mo. x 12 ) $4800 for food + $1,500/year for gas, which totals ($14K + 4.8K + 1.5K) $20,700.

Thus your $60,000 bring home is really ($60,000 - $20,700) $39,300. You would actually make $8K more in Oregon using those calculations (and remember, Oregon has no sales tax, which is an additional 10.5% discount of whatever you spend on yourself). Moreover, as a self-employed person, your deductible "expenses" may vary... You may claim much more than the amount I figured in business expenses. It could easily be twice as much **cough** cooked-up **cough** that you report, which could change your numbers dramatically.

Again, this is all off the cuff. I may be all wet with my tax assumptions and numbers. A tax professional is the way to go.

»docs.google.com/viewer?a=v&q=cac···xCvfjHey



FutureMon
Ach Du Lieber
Premium,ExMod 2002-05
join:2000-10-05
Seaside, CA
Reviews:
·Suddenlink

Um, but we were going the W2 route - I would not be 1099'd or do the corp-to-corp.

Reason being I couldn't float all my bills until mid february when I got my first check (for a weeks pay).

- FM
--
This just in from the department of redundancy department...