What is an Independent IT Contractor?

Here are the latest numbers: The U.S. Department of Labor's current population survey shows that approximately 8.5 million people in the U.S. identify themselves as independent contractors, independent consultants, or free-lance workers. Half of all small business owners are independent contractors, two-thirds of independent contractors are men, and nearly four out of five are at least 35 years old. Only 34 percent of independents between the age of 25 and 64 have college degrees. 70 percent are married compared to 59 percent of traditional workers.
Let's define who or what an independent contractor really is in the IT industry. If you've been an IT independent for a year or more you know how difficult it is to link together enough work that really can be classified as independent projects without "selling out" and going W2. Like it or not, most companies want you full time. I look at hundreds of job postings each month - focusing on those that are supposedly "contractor" positions. Most are simply W2 jobs wrapped inside the "independent" keyword to get you to the table. That's why you see "contract-to-hire" or "W2 contract" so often in the job description. As if there could be such a thing as a W2 "contract".
The IRS is very hard-core about the difference between an independent and W2 employee. As a result, most companies are very leery of hiring those who represent themselves as independents. They can really come down hard on a company that screws up. It's far easier for companies to find talent through large talent shops. That's why a lot of the so-called independent job boards offer "services" that pay you a paycheck and take care of billing your clients. You are simply becoming a W2 employee just as if you were working on behalf of any of the local Colorado IT talent suppliers.
Most of the work you are going to see advertised on the web, whether via RMIUG, or a job board, is put there by a recruiter or a company who would prefer a full time employee. Any genuine independent contractor can tell you horror stories of their encounters with recruiters. Having said that, I'm not anti-recruiter - I'm pro-recruiter. We'll explore that perspective and the issue of working with recruiters in a subsequent newsletter.
To summarize: an independent contractor is a person who really does meet the IRS guidelines. I recommend you carefully read those guidelines and take steps to meet the test. Visit independent job boards from the resource page on this site and read how to really qualify as an independent. In our next newsletter we'll explore how to cut through the crap and work toward becoming a true blue independent. I'll tell you what has worked for me and what hasn't worked. I'm sure a lot of you have tips and advice to share as well and I hope you'll take a moment to pass your wisdom along for all of us.

Regards,

Clint Lewis - 32U eSolutions, LLC