Registered: March 17, 2006 Location: Las Vegas Posts: 82
Sat, Jan 17, 2009 @ 6:24 PM
pok-p=lkkQUESTIONS TO ASK A PROSPECTIVE EMPLOYER WHEN CONSIDERING WORKING �CONTRACT� AS WELL AS RELOCATING
The purpose of this is not to point fingers at any one employer or contract house, but to enlighten you if you are considering accepting an offer to work more than 50 miles from your permanent (meaning legal) residence. When I finally accepted an offer more than 900 miles from my main residence, I thought I had asked every question I could think of, so that there would be no unpleasant surprises. The operative term here being �thought�. This is a compilation of my own experiences and those of others. I hope it helps you make an intelligent decision. These questions are over and above the ones that you will need to do on your own regarding quality of life, entertainment, shopping, etc. in the new location.
PAY[/SIZE]
What will my hourly rate be?
What is the state income tax rate? (Assuming that this position will be out of your home state.)
Will I be an �exempt� or �non-exempt� employee? (�Non-exempt� employees are paid time and a half for overtime, whereas �exempt� employees are usually paid straight time for any overtime.)
Does overtime begin at 8 hours, or at 40 hours?
Is there a chance for overtime work?
Is direct deposit available?
If I am paid per diem, is it a separate check or is it combined with my wage earnings?
PAY PERIOD[/SIZE]
What is the pay period? Once a week? Every two weeks? Or something else?
Is the pay withheld for a period of time? (I started my new position on October 1 and didn�t receive my first full paycheck until November 2.)
What is the pay period schedule?
When would I receive my first paycheck?
PER DIEM
What is the per diem rate?
Is it taxable income? (If the contract is expected to last more than 12 months it will be taxable income.)
From http://www.irs.gov/publications/p17/ch26.html#d0e60803:
Temporary assignment vs. indefinite assignment. If your assignment or job away from your main place of work is temporary, your tax home does not change. You are considered to be away from home for the whole period you are away from your main place of work. You can deduct your travel expenses if they otherwise qualify for deduction. Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than 1 year. If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called travel allowances and you account to your employer for them. You may be able to deduct the cost of relocating to your new tax home as a moving expense. See Publication 521 for more information. Determining temporary or indefinite. You must determine whether your assignment is temporary or indefinite when you start work. If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise. An assignment or job that is initially temporary may become indefinite due to changed circumstances. A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Going home on days off. If you go back to your tax home from a temporary assignment on your days off, you are not considered away from home while you are in your hometown. You cannot deduct the cost of your meals and lodging there. However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work.
Do I need to supply receipts? (This would be �expenses�.)
What, exactly, does per diem cover?
Does it cover the cost of �mobilization� (the initial trip from your home to your new location)?
BONUSES
Will I be eligible for any bonuses?
What will they be?
Is there a referral bonus?
Is there a safety bonus?
VACATION[/SIZE]
Will I earn any vacation?
At what rate?
Is it available to be taken immediately or is it �earned�?
HOLIDAYS[/SIZE]
What holidays will I be eligible for?
How many holidays are allotted?
What is the first holiday that I would be paid for? (This would become an important issue if your first day would be close to a federal holiday. For instance, if your first day of work would be November 15, would you be paid for Thanksgiving?)
If the clients� work schedule is 4 10-hour days, will I be able to claim 10 hours for holiday or only 8?
WORK SCHEDULE
What is the work schedule? (A lot of government contract work 4 10-hour days with Fridays off, or some similar schedule.)
Is overtime available on Fridays and/or weekends?
TRIPS HOME
Are trips home provided?
Are trips home reimbursed or will the company make the travel arrangements?
How many trips home per month are allowed?
If the trip requires a two-day travel (900 miles, for instance) is lodging reimbursable? Are meals and incidental expenses (M&IE) reimbursable during my trip home? (Normally, M&IE is not reimbursable while you are at your permanent residence.)
Is there a �not-to-exceed� rate, based on current airline fares, should I choose to drive home?
BENEFITS
Is health care provided?
What is the cost to me?
Is it a group policy?
Do I have to obtain health insurance on my own?
Is a 401k plan available?
Is a flexible spending account available?
Are sick days available?
OTHER QUESTIONS TO ASK
At what point, if any, would I be eligible to be hired direct to the client? (Assuming that is your desire.)
Is a loan available during the �settling in� period?
Is an advance in pay available during the �settling in� period?
Is there a period of time that I would be expected to find more economical living arrangements? (I was expected to find more economical living arrangements within 60 days and a lease was required once I did.)
If I am hired direct, will the company pay for moving my household goods to the new location?
What, exactly, are the arrangements for relocation?
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