Head hunted for new role however it is via Independent Contractor Agreement

skinny90

Hi folks,

Looking for some opinions regarding Independent Contractor Agreement.

Its with a US company looking to expand into EMEA but they have not done so yet.

My current role pays 65-70K depending on bonuses.

This new role is 150-170K USD with a 75/25 split between base and bonuses based on a quota.

Is there anything specifically I need to ask?

Typically what are the main disadvantages for ICA.

My main concern would be security as I plan to get a mortgage either this year or next.

From initial talks, the plan is to set up a site but nothing concrete yet.

Also I am aware of companies(globalization partners) specializing in setting up entities for say Irish workers so they can be employed, be taxed accordingly, pay pensions, insurance, health etc

So im wondering why they are keen on the ICA route.

Looking forward to some feedback

trasver

Hi there. I recently did something similar to yourself and the primary reason I did it was to get a mortgage so it is possible.

I was working for on overseas company (non-EU) and switched to independent contractor via an umbrella company. Essentially the umbrella company invoices the employer and then processes all of your tax, pension etc and then pays you your net salary and provides a payslip. There's two ways of being "employed" by the umbrella company (employee or director) and each of these comes with upsides/downsides.

One of the potential main downsides is if you are an umbrella director you are class S for PRSI which has implications if you lose your job.

I use an agency who setup and process everything and it is super easy - comes out to ~30 per month (you can write their fee off against tax) and so it is a no brainer for me. Feel free to PM me for more info.

Why is the potential employer not willing to give you the security of a salaried position. If they are paying a premium not to give you security what is the monetary value of that to them?

skinny90

https://www.boards.ie/discussion/comment/118488096#Comment_118488096

Thanks, How did you get on with a Mortgage? I would have thought it would be tricky no ?

What are the other downsides if you dont mind me asking?

Given they are hoping to set up an office, and build a team, is it unreasonable to ask to be permanently employed?

skinny90

https://www.boards.ie/discussion/comment/118488121#Comment_118488121

I am not sure, its why I posted here I guess...

skinny90

just bumping the thread again

@trasver are you still doing the same setup?

you mentioned being a director / class S

What are the upsides of it?

What are the implications if I loose my job

In terms of pension etc is it as you’d expect, i put in % and they’d match it

ive been approached again by the same company and they have thrown figures out that are double what was originally mentioned.

Since I posted this my salary has increased by about 6k

Aurelian

I'd have a think about this for your mortgage. You'd need to show the bank audited accounts as self employed. You'd want to ask in advance how many years they'd expect to see.

Being permanent in a PAYE job is the simplest route for a mortgage.

On the pension I wouldn't think they'd make any contribution, You'd have to pay it out-of your end. That's the point of you being a contractor and not an employee.

skinny90

I have a mortgage now…that’s not to say i wont be looking for a mortgage again as long term plan is to build so that’s good to know

The reason why I asked about pensions is that they are trying to accommodate folks in the EU as much as possible as they roll out a team here.