Vitrix Technologies | IT Services & Solutions

Career Center: Advice Corner

Contracting As a Lifestyle
What are the differences between contracting and permanent work?
As a contractor, your relationship with your manager (the client) is different than that of a regular full-time employee. One primary difference is that you receive a higher rate of compensation than you would as a full-time employee. In addition, contractors often remark favorably on the noticeable lack of political hassles within the contract team. Instead, it's often simply the case of getting to work and getting the job done.

As a lifestyle, contracting allows individuals to move from one company to another in relatively short periods of time, gaining exposure to different work and technical environments, picking up valuable experience and skills along the way. This is not necessarily an uncertain process. The reality is that many contracts last over a year.

Must I give two weeks notice when leaving a permanent job or contract?
Yes, whenever possible. When you decide to move on, work it out with your current employer - never burn your bridges! Put yourself in the hiring manager's shoes - if someone who intends to hire you finds out that you are going to end your current assignment without adequate notice, wouldn't it appear that you might do the same thing again in six months?

When does the contract terminate? How will I know how to plan?
While California State Law allows either party to terminate employment at will, you can prevent unfortunate surprises by working closely with your manager in achieving his or her objectives. As you begin to move between contracts, you'll develop a reputation that will allow you to advance in pay rate and skills.

Interview Tips
Who sets up the interview?
We generally try to make this as simple as possible for the client and frequently pass your contact information to them, allowing them to set up the interview with you directly.

How should I plan for my interview?
Try to determine the length of the interview and what will be required of you. If an interview schedule is made available, be sure to determine the respective roles of each person with whom you will meet.

Should I give references at the interview?
Most often, they are not required. If you would like to bring them to the interview with you, just in case, be sure to verify the accuracy of your information, including phone numbers and e-mail addresses, beforehand. Do not give the interviewer your references unless you are asked for them.

Any dress code for interviews?
If anything, overdress on your first interview. Appearance can be important. For most contracts slacks and a sports jacket or blazer will suffice. Be yourself. If, after arriving, you feel you have misjudged the dress code, forgive yourself and press on with the meat of the matter; that's all the interviewer is looking for.

Should I bring a copy of my resume to the interview?
The interviewer should already have a copy of your resume that we provided to them. If you would like to bring an extra copy, we will provide you with a revised resume which is tailored to the client and the job for which you are applying.

Should I ask questions at the interview? What kinds of questions?
Take the lead from the interviewer. In general, respond to questions and do not initiate questions unless asked. Incessant talking during an interview implies a lack of confidence. If you don't know the answer to a question, the best answer is I don't know. It is better to present yourself honestly. An experienced interviewer will see through guesses. When prompted for questions, ask ones that will give you more information about the work environment. This sort of question will show that you have an interest in and knowledge of the position. Find out who will make the decision to hire and how soon you will know. Let the interviewer know if you have other outstanding offers.

Any last minute tips?
Be sure to get accurate directions to the interview site and arrive early. Don't discuss pay rate with the client. Your final comments should be expressing interest in the opportunity and asking for the job.

Getting Paid and Paying Taxes
Do I have to pay any fees when working with Vitrix Technologies?
Absolutely not. Furthermore, when you work as an employee on a W2 basis, we assume all responsibility for invoice collection and taxes. When you terminate your job with any employer, you will be paid in full for the time worked.

As a contractor, do I get paid for overtime work?
Sure! That's the idea. Unlike a full-time, salaried employee, you will be paid for each hour worked. Most clients are happy to pay for the extra time you work. If you put in 60 hours a week, and your manager has approved this, you'll get paid for all 60 hours. Consider that our average contractor works about 44 hours per week. On a $35 per hour contract, that really adds up: $35 an hour can make a difference of $7,280 to you when annualized!
You should not expect time-and-a-half or double-time, however. Generally, software engineers are in an income bracket that excludes them from this. Similarly, lunch breaks, vacation, and holidays go unpaid.

How often do I get paid?
We pay our employees every two weeks. You must submit signed time cards on time to be paid promptly.

What is the difference between 1099 and W2 employment?
1099 is a tax status for businesses, W2 is a tax status for employees. Some contractors go to the effort of starting a small business for themselves, through which they get paid. When you work for Vitrix Technologies, we assume full responsibility for collecting debts from our clients, for withholding payroll and other taxes, for administering our 401(k) plan, and for providing various types of insurance.
As a Vitrix Technologies consultant, you'll be hired as a W2 employee. You'll need to complete I9 immigration forms and W4 tax forms. There are two distinct advantages to being a W2 employee. First, it shelters you from the bureaucracy and legal headaches of employment. You're assured a regular income, and you leave the matters of payroll and contracts to us. Second, as a W2 employee you are eligible for valuable benefits. If you have more questions about 1099 contracting, see the IRS rules about working as an Employee or Independent Contractor below.

Employee or Independent Contractor
Employment status can be confusing, especially when it comes to taxes. Why can some people work as independent contractors and not have taxes withheld from their pay, while others must file a W4 form and have taxes withheld from every paycheck? It's important to understand the difference, because a mistake in classifying yourself could be extremely costly, come April 15th.

The Internal Revenue Service uses the following 20 factors to help determine whether someone is an employee (W2 withholdings) or an independent contractor (1099).

The IRS 20-Factor Control Test

Making a profit or loss
- Employees: paid for time worked and have no liability for business expenses.
- Independent Contractors: can earn a profit or suffer a loss as a result of the work being done.
2. Work on specific premises
- Employees: must work where their employers tell them.
- Independent Contractors: usually able to perform their services where they choose.
Offering services to the general public
- Employees: offer their services solely to their employers.
- Independent Contractors: offer their services to the general public.
Right to fire
- Employees: can typically be discharged by the employer at any time.
- Independent Contractors: relationship with a hiring firm can only be terminated according to the terms of their agreement.
Furnishing tools and materials
- Employees: generally furnish all the tools necessary to do the job.
- Independent Contractors: furnish their own tools.
Method of payment
- Employees: paid by unit of time.
- Independent Contractors: paid a flat rate for a project.
Working for more than one firm
- Employees: generally have one employer who can request loyalty.
- Independent Contractors: usually have multiple clients or customers and are free from control by any one firm.
Continuing relationship
- Employees: have a continuing relationship with the employer.
- Independent Contractors: usually finish one project and move on.
Investment in equipment or facilities
- Employees: have no investment in the equipment or facilities.
- Independent Contractors: have some investment in the equipment and facilities.
Business or traveling expenses
- Employees: business and travel expenses are paid by the employer.
- Independent Contractors: pay for business and travel expenses.
Right to quit
- Employees: may quit at any time without incurring a liability to the employer.
- Independent Contractors: legally obligated to complete the work agreed to.
Instructions
- Employees: may be given oral and written instructions about when, where and how they are to work.
- Independent Contractors: decide on how to do their work.
Sequence of work
- Employees: may be required to do their work in a sequence established by their employer.
- Independent Contractors: decide for themselves the order or sequence in which they work.
Training
- Employees: may receive training from their employers.
- Independent Contractors: generally receive no training.
Services performed personally
- Employees: required to personally perform the services they are hired to do.
- Independent Contractors: may hire others to do the work they contract.
Hiring assistants
- Employees: can only hire an assistant at the direction of the employer.
- Independent Contractors: hire, supervise and pay their own assistants.
Set working hours
- Employees: work hours are generally set by the employer.
- Independent Contractors: set their own work hours.
Working full-time
- Employees: may be required to work full-time.
- Independent Contractors: free to work the hours they choose, usually also free to work for more than one client at a time.
Oral or written reports
- Employees: may be required to submit regular reports on the progress of the work.
- Independent Contractors: only responsible for the end results of the job contracted.
Integration into business
- Employees: provide services which are integral to the company.
- Independent Contractors: services are not molded to the firm's overall business as one integrated operation.

Other factors:

In addition to the Internal Revenue Service, other groups or agencies may also become involved with your employment status. While the IRS tends to stick to the above 20 factors, the courts and other agencies may use some of the following additional criteria on which to base their decision.

Skill required.
Workers whose jobs require a low level of skill are considered employees. Workers whose jobs require high skill to perform their duties are usually considered Independent Contractor.
Worker Benefits
Employees receive benefits, such as medical insurance coverage, sick leave, paid vacation and pension funds. Independent Contractors receive no benefits.
Tax treatment
Employees have federal and state payroll taxes withheld by their employer. Independent Contractors pay their own taxes.
Intent of the hiring firm and worker
The intended relationship between worker and employer helps to establish the relationship itself.
Custom in the trade or industry
If, in the industry it is standard for workers to be either employees or independent contractor, it is easier to substantiate such a category.
Economic dependence
Employees are economically dependent upon the employer. Independent Contractors are not economically dependent upon the employer.