North American Fruit Explorers mailing list at ibiblio

["Bruce Hansen" <brucedhansen@sbcglobal.net>]

I could not agree more having been a consultant since 1982. You are out of
the labor force; drive fast cars and take chances. You don't produce, you
die. It is on your back. No vacation. No sick leave. I have run pretty good
size corporations as a consultant. Yes, there is no FICA but I can deduct
expenses from gross income. Sure, accounts receivable are a problem; client
has problem solved and doesn't seem to remember your account payable.
However, it is a good life. Everything becomes a project. Sure beats working
for a wage.

-----Original Message-----
From: nafex-bounces@lists.ibiblio.org
[mailto:nafex-bounces@lists.ibiblio.org]On Behalf Of Jim Fruth
Sent: Friday, December 24, 2004 8:48 AM
To: nafex@lists.ibiblio.org
Subject: [NAFEX] Consultants


    Don't be knocking all those who have the title of "Consultant."  Not all
consultants ARE consultants.  Big corporations give employees the title so
they don't have to pay benefits, workman's compensation or do withholding.
    When I first worked for Kimberly-Clark Corporation, I was hired for a
specific project.  Like most research projects, my project was granted a set
amount of money and the only way more money could be obtained was if the
project was near completion, it promised to make money for the company and
if the president approved it.
    Anyway, to have the maximum amount of money for any projects, employees
hired for the project were hired as "consultants" and, instead of having
employee status, were given an open ended contract.  At the end of the year,
they weren't given a W-2 tax form, but a 1099.  Besides not having to pay
benefits, etc., this method of hiring has another huge advantage for the
company:  When projects are terminated, and there is not another project to
be hired for, the employee is terminated (they call it "terminating the
contract"), the company doesn't have to pay unemployment compensation.  The
>From a tax standpoint, IRS lets them get away with it so why not keep doing
it?
    There is an advantage for employees here too.  As the project leader,
I'd hire people right out of college, preferably people with a master's
degree and, by the time the project was over, they'd have some meaningful
job experience to add to their resume, salaried work experience instead of
the usual, unpaid, internship.
    So, please speak a bit more kindly of those of us who are called
"consultants."

Jim Fruth
Pequot Lakes, MN


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