I got email today from a former client, about an upcoming contract opportunity. It's a three to four day work week, and it looks like they are interested in a long-term thing. I started looking at the costs of it, wondering if it's something I can currently afford to consider.
I suspect the take-home pay itself amounts to about the same as I get now. I'd go back to dividends which are taxed differently than regular income. I'd regain self-employment status, which in itself could be a costly decision should the contract suddenly evaporate.
My unvested DPSP currently sits at $5000. I think that's before tax dollars. I should find out how and when it vests. It's not something the company offered when I first joined, and I expect the opportunity to further accrue here could disappear as quickly as it appeared.
As a full-time employee, I pay into a mandatory government employment insurance plan for which the self-employed are ineligible. It guarantees me a bit of income in case of layoff.
I'd also lose paid vacation, paid sick days, and paid statutory holidays. These alone could amount to approximately $10000 (in before-tax dollars) per year. Red herring.
A return to contract work means that I'd lose my health benefits provided by my current employer. I maintain private benefits so that's probably not such a big deal.
This year's bonus payouts were nice in their own way. As much as I enjoyed them, I can't convince myself to list them in the costs of changing things up. I'm skeptical that they will recur with any meaningful frequency.
There's unvested stock to consider as well. It's the restricted options that have potential value. The other ones are nice to have, but could be as much of a capital loss as a gain.
There's also the guaranteed 15% discount I get through the ESPP on future stock purchases through this plan. I have been making a bit of money through this option.
In a future post, I will consider the benefits. Maybe.
Update, March 9:
I wrote him back, with a very clear No Thank You. It was hard.
