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What is Contract Programming? An Alternative to the Conformity of Everyday Employment
By:
Michael Nighosian - [work]
What is contract programming, you ask? Well, when companies
need specific computer programming expertise, for temporary
periods of time, they generally hire a contract programmer
or an employee of a consulting firm. Contractors almost
always have a higher hourly wage than a salaried employee
and are often paid for overtime. Contracts can last from one
to three months to many years, depending on the situation. A
contract programmer generally does one thing: program (code)
for the duration of the contract. So, contract programming
is just an area of computer consulting. Other areas of computer consulting include custom developers, network
consultants and information technology (IT) consultants. The
contract programmer can work via two forms of contracts: 1)
''W-2 '' contracts and 2) ''1099'' contracts.
There's the W-2 contractor
The ''W-2 contractor'' receives the typical IRS W-2 form at
tax time and works as a temporary employee of a contract
broker or some form of employment agency. The contract
broker basically acquires a contract with a client company
and hires the contractor to work on that contract for them.
Brokers make their money by charging the client an amount
over your agreed upon hourly rate. In this form, the
contract programmer is a temporary, hourly employee of the
broker's company and this is the form that is easiest for
the newcomer to obtain.
And the 1099 contractor
As a ''W-2 contractor'', your broker a.k.a.: temporary
employer or agency will collect taxes from your paycheck,
just as if you were a regular employee. The ''1099
contractor'', can still work through a broker, but gets paid
on an IRS form 1099 and must take responsibility for paying
all applicable taxes herself. This ''1099'' form is for, in
IRS lingo, ''Independent Contractors.'' Independent
contractors have more work to do before they get a contract:
they have to market themselves like any other business. This
includes brochures, business cards, web sites, networking,
etc. They have to consider obtaining more forms of insurance
that may include general business liability and errors and
omissions insurance. They also generally have to form a
corporation in order to work for certain companies. The pay
back for this extra work is a higher hourly rate. To the
beginning contractor, I always suggest starting out as a
''W-2'' contract programmer because it is generally the
quickest and easiest path to b.com ing a contract programmer
and the best way to determine if contracting is the right
career choice.
The W-2 contractor is like a typical employee...almost
The main differences between a full-time employee and an
hourly, contract employee working for a broker are, the
contractor:
1) Will probably have to pay for his or her own health and
disability insurance, which amounts to very little compared
to the increased income one usually sees.
2) Generally gets paid top-dollar for his or her work. Many
earn $100 or more per hour for 40+ hours a week.
3) Can take as much time off from work as he or she pleases,
while in-between contracts.
4) Has independence from corporate politics.
5) Has the chance to live wherever she wants or live in
different places as determined by the particular contract.
6) Is often seen as an expert in his or her field.
More work for ''1099 contractor
These points apply to the ''1099 contractor'' as well, but the
''1099 contractor has more work to do in filing taxes,
corporate paperwork, advertising and searching for her next
contract as opposed the ''W-2 contractor,'' who basically
makes a few calls to her favorite brokers and tells them she
is ready for another contract and the brokers do the
job-searching for her. Now, everything I've said thus far is
pretty cut-and-dry, so let's take a look at a more elusive
topic: what qualities make a good contract programmer.
Signs of a good contract programmer
Over the last decade, I have met and worked with many varied computer programmers. From this experience, I have devised
the following list containing what I believe makes a good
potential contractor programmer. A good contract programmer:
1) Makes computers an avid hobby of his. When he comes home
from work he plays with or hacks the computer trying to
improve its performance.
2) Tries to learn more about computers than his peers do and
he also likes to program the computer to have it do ''cool''
things.
3) Has often dreamed of being an expert, high-paid computer
professional.
4) Has learned how to master the art of studying computer
science.
5) Spends his free time reading computer books and magazines
- yes kind of geeky!
6) May like to build his own computer systems and enjoys
tweaking and upgrading them to extract the most performance
from them.
7) Is very professional and humble.
You've got to love to do it!
These really are just some of the basic qualities of someone
who loves computers and loving computers is really the main
ingredient for a successful career in contract programming.
If you don't love doing it, you will not survive. If you do
love it, it will be a joy to go to work every day and to
continually update your skills. The computer field changes
rapidly and only someone who really loves computers and
makes it his hobby will have the desire to continually
upgrade his skills and be the best he can be at all times.
If you possess most of the seven qualities listed above and
like the idea of using your hobby to catapult yourself into
a high-paid, fulfilling career, even if the economy is down,
you should consider a career in contract programming.
Michael Nigohosian,
http://www.mwwcorp.com
Michael is the author of the award-winning and bestselling series, The Secret Path to Contract Programming Riches and instructor for the course Introduction to Contract Programming . He is also director of Rapid Mastery Technology at McGillis, Wilcox, Webster and Co., Inc.
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