conversation: User (TIATAFMPFP): "Hi all,\n\nI have a job offer to work for a fortune 100 company making $38 / hour on an indefinite contract. I would be working 40 hours a week, I would be a W2 employee of the company who is contracting me, and I would get some benefits.\n\nI get health insurance out the bat, and I get PTO and a 401k plan after working a year (I can take unpaid time off whenever I need to).\n\nSo, if I'm working $38/hr at 40 hrs a week and 52 weeks a year (assuming I don't take unpaid TO) that would be $79,040 a year.\n\nI just want to make sure I'm not missing anything big here that would make this offer not as appealing as it seems. For instance, extra taxes or something like that (although I'm a W2 not 1099 so I think taxes should be the same).\n\nHere's my pros and cons list so far (just based on contracting vs salary):\n\nPros:\n\nI'm hourly and get paid overtime\n\nAs a contractor I can work from home a lot during the week\n\nI still get health insurance through the contracting company\n\n\nCons:\n\nI won't get PTO or a 401k until I work there for a year\n\nContracting is less stable than a salary position and can be ended at any time\n\n\nI'm just used to being salaried, so I want to make sure I'm not missing anything important that will bite me in the butt later on.\n\nThanks for your help!\n\n**tl;dr:** Excluding benefits, is there anything else that I should be wary of when accepting a job to be a W2 contractor getting paid hourly vs being a salaried employee?\n\n**Edit (also in comments):**\n\nSheesh, this blew up a little.\n\nI had a talk with my recruiter and manager and here are some key takeaways:\n\nThe majority of the contractors at my company have been there for more than 1 year. So the 1 year mark doesn't appear to be a big keep or fire moment.\n\nThis is not an IT contract, it's a Digital Marketing contract. It's also the only position and a lead position (as in I'm not 1 of 50 analysts or something like that). I talked to my manager and he assured me the plan for this (if all goes well) is to bring it in full time. Yes, I understand that's not promised and there are still risks.\n\nIt's not a project based contract, so I have a guaranteed 40 hours a week as long as I'm working there.\n\nMy manager seems devoted to my success and is willing to work with me even if things don't go perfect in the beginning. They mentioned even bringing in training if I needed it.\n\nAnyways, all in all, I think my fears of it being a turn-and-burn contract job have been effectively squashed. Yes there are still risks, but risks I'm willing to take and risks that honestly apply to any new job. My future as an employee is never guaranteed, even as a salaried employee.\n\nThat being said, I have reached out to see if I could increase the rates at all considering: no 401k the first year, lose my non-vested 401k at current employment, only get 6 holidays instead of 10, no PTO the first year, etc."
  Self: "No.\n\n38/hr is closer to 76k per year.  There are weeks the place will be closed and you won't work b/c everyone is on vacation.\n\nAlso, while the ACA is in effect, you have to buy your own insurance, or get ass-reamed in taxes.  About 300/month or more depending on where you live.\n\nSo about 73k per year.\n\nBe aware that W2 jobs are usually temporary.  Companies use W2 workers for one-shot projects.  Expect to be pounding pavement either 6 months or 12 months later, in most cases.\n\nThe reason to take a W2 is because it offers significantly more than what you would get as a regular employee in the same occupational position.  Remember you are being paid a premium because you are agreeing to be a temporary worker.  You'll need to put aside money to travel to wherever your next gig is.\n\nIf that works for you, jump on it."
  