Job Shopping for Fun and Profit

1. Job Shopping for Fun and Profit A step-by-step guide to temporary assignments in the gig economy

2. Disclaimers • I am not: • An investment advisor • A tax advisor • A career counselor • A Legal advisor • Verify everything that follows through • Professional advisors • Irs.gov, GSA.gov, www.ceweekly.com , www.cjhunter.com, etc.

3. Motivation Client Shopper Interesting work Compensation Overtime Tax benefits Limited commitment Short search No fault termination No age limit • Project Schedule • Seasonal shortages • Specialized need • Staffing shortage • Overhead expense • Benefits • Limited commitment • Mandatory retirement

4. Scope • W-2 Contractors • Taxed as individual on 1040 • Per diem/mileage as shop allows • Carve-out for per diem, mileage • 1099 Contractors • Taxed as Schedule C business (pass-through entity) • Rate includes expenses • Individual 401-k plan • Consultants—join IEEE Consultants’ Network

5. Basic Qualifications • Geographic preferences • Family restrictions • Character • Clean record • No drug/alcohol addiction • Financial • Good credit, FICA 750-850 • Resources for dry period of 6-12 mos. • Orientation best for technical rather than people person

6. Resume • First page is a summary similar to a conventional resume • Remainder is similar to a Curriculum Vitae • All experience, education, etc., including any relevant summer jobs • No limit to length—recruiters are looking for a match • File at www.CJHunter.com for recruiter searches • For an example, see www.CJHunter.com resume ID=ww068501.

7. Leads • www.CEWeekly.com or www.CJHunter.com • Pre-eminent matching for temporary assignments • Paper subscription for minimum term to get directory of contract firms, etc. + on-line • On-line subscription for remote access $25/yr • Resume storage • Stored search • ( system or software ) and engineer

8. Typical Job Listing • Location: City, State • Duration: 12+ Months • Rate: Market Rate (Negotiable) • Job Description: • • Has hands on real-time deeply embedded C development expertise that includes recent lab experience integrating with, and debugging on, target hardware• Has experience in developing in a multi-processor environment• Expertise using Perforce or other source configuration tools for integrating a single shared baseline • Is a self starter, able to individually design and implement a wide variety of complex hands-on coding assignments, debug, develop unit and SW integration tests, and perform peer reviews• Demonstrates a desire and the ability to learn the complex SW architecture and GPS user equipment• Prior background with some of the following beneficial:o GPS concepts, standard user host interfaces, signal processing or navigation user equipment, automated embedded system testing, military GPS receivers, position, velocity and timing, Matlab, Kalman filters, digital signal processing or tracking loops, DOD development experience• Demonstrates written and oral communication skills • Consistently delivers individual assignments to plan• Knows and continuously practices software best practices• Has platform experience using Windows, C/C++ and GCC

9. Responses • Shops usually overly specify to maximize chance of a match (25-50% is good) • Send an email • Brief relation of requirement to experience • However tenuous, forthright • Availability • No $$$ at this point • Contact information • Typically 1000 in one month

10. FinancesSee https://www.gsa.gov/travel/plan-and-book • POV mileage allowance • GSA $0.58/mile per GSA effective 1/1/2019 • Lodging • Lookup on GSA function of location, season • Standard rate $94/night • Actual cost for 1099’s subject to above • Meals & Incidentals • Lookup on GSA function of location, season • Standard rate $55/night • Proration rules first/last day • Other differences between W-2 & 1099

11. Requirement for Per Diem • Permanent residence outside the “commute area” of the job • May be residence of parent or child • Generally considered the “tax home” • Considerations • Temporary residence inside the “commute area” of the job • “Commute area” is undefined

12. Taxes • Consider both federal and state (possibly city?) • Consider tax brackets • Determine impact of tax free mileage/pd • Budget expenses as % of reimbursement • Aim to set rates such that after tax income is constant over assignment locations

13. Retirement • Rare for W-2 contractors • Plan for 1099 contractors • Individual 401-k plan (One-participant-k) • See fidelity.com • For individual contractor • For spouse in community property state • 100% of compensation up to $19,000 ($22,500) • 25% of profit up to total of $56,000 ($59,000) • See https://www.fidelity.com/retirement-ira/small-business/self-employed-401k/overview

14. Retirement (Cont’d) • Consider tax rates for traditional/Roth 401-k • Roth not deductible but earnings will never be taxed • Married/Single rates differ • Consider other retirement income • Consider RMD for traditional 401 plans • Generally rollover from 401-k to IRA at term. • Roth conversion advisable but tricky

15. Screening • Telephone with recruiter, never video or in person (about 50 such call-backs) • Be prepared to discuss every requirement in terms of experience and/or education • Elicit name of client, location, details • Determine expected report date • Establish basis of engagement, mileage, per diem amounts or “carve-out” from GSA rates • Finally, state your rate

16. Submission • About 50 shops will submit to clients • Do not expect changes from your agreement with the shop • The shop will represent you to the client • The shop will usually indicate intent to submit • The shop will not usually indicate progress after submission until the client requests an interview.

17. Insurance • Client/shop will not provide auto insurance • Client/shop will not provide health/Rx insurance • Client/shop may require liability insurance or be additional named insured on existing policy • Malpractice insurance may be necessary • But perhaps not if client is presumed competent • Incident vs. Claims Made insurance • Seek legal advice

18. Client Interview • Telephone (likely only 1 or two) • In person, video, group interviews generally unsatisfactory, best to decline • New requirements may arise • Listen for the “real” requirements • What the client really wants • This is the time to nail down reporting who, where, when, contact details, etc. • Do not discuss $$$ with client or others • Make the deal with first, rarely go to second

19. Security Clearance • Be sure any security clearances are noted with each employment/assignment on resume • Recent clearances are often reactivated • No hard and fast definition of recent • Some are reactivated even before the offer • Be sure to retain copy of all security clearance forms indefinitely • Be aware that some higher clearances may be classified

20. Checkpoints • About 2-3 weeks • Elicit a quick performance review • Determine if assignment will last as assumed • Continue to assess at end of each task • Be prepared for termination • Look for added tasks, change of/new assignment • End of year • Be prepared for possible extension to reset per diem

21. Transport • Air • May be best for the initial few weeks • Auto/forwarded packages • Limited bulk for the long haul • Large SUV or van • Allows a bit more personal property • Auto with trailer • Most autos cannot handle 2000# hitch so only open trailer

22. Lodging • Search on CJHunter for Furnished Housing • Or https://www.furnishedfinder.com/housing/?s=cjh • Ensure any lease includes no penalty termination due to job termination • For the initial 2-3 weeks, hotel or airbnb best • Extended stay is expensive after 1st month • Look for furnished room or apartment • Unfurnished with bargain sale furnishing OK

23. Expansion • Additional tasks • Negotiate change in work schedule to beyond 40 hours • Listen for new, expanded roles • Be ready to help even outside your assignment • Be curious and read up on things current staff may not understand • Referring other shoppers produces goodwill

24. Conversion to Client’s Employee • Most contractors will refuse due to $$$ • Shop’s contract with client may require payment • Consider all aspects of offer such as • Fit within organization/prospects • Relocation from permanent residence • Title/$$$ • Benefits

25. Termination • Termination is to be expected • Remember, there is no stigma attached • Understand the motivation • If budgetary, there may be flexibility in schedule within cost • Often, the project may just be coming to an end • If uncomfortable, “fire the boss”! • Look for new role in client • Maybe you just need to change shops to reset