Am I getting screwed in the transition from contractor to employee?
Author
Hello forums, long time no post.
I've been working at company X for 3.5 years as a contractor. For legal reasons they've asked me to become an employee, paid hourly like I'm used to (also because I haven't worked full time in 3 years).
Payroll takes one week to process and they don't want to predict that week's hours, so my paychecks will always be one week behind. Normal salaried employees are paid up to and including the day of payment every pay period, and in my previous life as a contractor I was paid (generally) the day after I turned in my invoice. But now, with this one week delay it's like they'll be holding one week of pay hostage, as the one week rolls from pay period to pay period, until I quit and recieve my last paycheck, where that week will finally show up.
Am I crazy for thinking I'm getting screwed as soon as I become and employee? That week of pay could be invested or used as a down payment on a house.
No, that is typical corporate workings. It is easier on the book keepers to handle it the way they do, especially taking in to account issues like sick leave and vacation hours that are submitted late. Just be glad they are on a two week cycle. It is normal to complete the end of the first work cycle then get a check on the next payday. Some places are on a one month pay cycle (schools are notorious). With a one month cycle, it can be as much as 60 days of work before you see a paycheck.
Actually, your contracting experience sounds atypical. Back in my contracting days we had net-10 or net-30 payment, or pay in advance for the less-than-reputable people.
As far as getting screwed because you are an employee, that is your own decision to make based on your own negotiation skills and world view.
Actually, your contracting experience sounds atypical. Back in my contracting days we had net-10 or net-30 payment, or pay in advance for the less-than-reputable people.
As far as getting screwed because you are an employee, that is your own decision to make based on your own negotiation skills and world view.
I've never had the luxury of working at a company where payroll is up to the day of invoice. My current job is a week behind, and that's a new experience for me: previously I'd been paid first and fifteenth (or business days preceding), or fifteenth and last business day. I don't know whether salaried employees at my current position are paid up to the day; I've been hired for a full-time, salaried position, but my transition from hourly pay to salaried has been stalled by a budget review in the parent organization.
You're not getting "screwed." In all likelihood, hourly pay is contracted out to a separate organization, which is why it's a week behind.
You're not getting "screwed." In all likelihood, hourly pay is contracted out to a separate organization, which is why it's a week behind.
That's currently how I am paid. There is no way for them to know how many hours you are going to work, so they can't estimate how much to pay you. (Well, they could, but it would be weird).
I get paid every Thursday for the work that I did the week before. Also, I don't think you can look at it like they are holding your money, as they are most likely going to be processing the hours, getting paychecks set up, etc. It's not like they have the paycheck all drawn up and sitting there, and they are just waiting a few days to give it to you.
I get paid every Thursday for the work that I did the week before. Also, I don't think you can look at it like they are holding your money, as they are most likely going to be processing the hours, getting paychecks set up, etc. It's not like they have the paycheck all drawn up and sitting there, and they are just waiting a few days to give it to you.
Quote:Original post by Mike.Popoloski
That's currently how I am paid. There is no way for them to know how many hours you are going to work, so they can't estimate how much to pay you. (Well, they could, but it would be weird).
My pay period ends three days *after* payroll is sent out. They send it off on Wednesday and the period ends on Saturday. I have often wondered what would happen if I quit on the Wednesday they send it to accounting. :-)
Of course, I also have a coworker who has been wondering what would happen if he started showing up for two hours each day (the parts with meetings) and see how long it takes for management to get around to firing him.
Author
So far the concencus between y'all and my IRL friends is that I shouldn't worry about it, so thanks for that. It's my first time being an hourly employee; prior to contracting I was salaried.
Quote:Original post by wendigo23Talk about luck. I always expect Net 30.
... in my previous life as a contractor I was paid (generally) the day after I turned in my invoice.
Quote:Original post by wendigo23Will you receive benefits as an employee?
Am I crazy for thinking I'm getting screwed as soon as I become and employee?
Quote:Original post by frob
My pay period ends three days *after* payroll is sent out. They send it off on Wednesday and the period ends on Saturday. I have often wondered what would happen if I quit on the Wednesday they send it to accounting. :-)
Mine ends 5 days after payroll (monthly), but as I'm salaried the amount is the same every month so no guesswork required.
Presumably if you quit, you have a notice period, so you wouldn't just stop getting paid on the Wednesday, it would be a week or month later, by which time they'd have calculated the correct amount of pay.
That is another thing that seems to be so particular of North Americans.
We europeans get paid by the end of the month. Here in Portugal we have 14 paychecks, 12 for each month of the year, 1 paycheck called "Vacation Paycheck" and a last one called "Christmas Paycheck" (VP & CP).
The VP is payed on the previous month of your first Vacation period. In other words, if you're taking two weeks off at the end of June, expect two paychecks in the last days of May (May salary and vacation paycheck for June).
The CP is mandated by law to be payed up until the 15th of December. Both the VP and the CP are of equal value to your salary.
Europe and America really differ on pay customs and vacation time. These are two of the things that should be in the mind of anyone going to work in America from Europe, or vice-versa, really different customs there.
We europeans get paid by the end of the month. Here in Portugal we have 14 paychecks, 12 for each month of the year, 1 paycheck called "Vacation Paycheck" and a last one called "Christmas Paycheck" (VP & CP).
The VP is payed on the previous month of your first Vacation period. In other words, if you're taking two weeks off at the end of June, expect two paychecks in the last days of May (May salary and vacation paycheck for June).
The CP is mandated by law to be payed up until the 15th of December. Both the VP and the CP are of equal value to your salary.
Europe and America really differ on pay customs and vacation time. These are two of the things that should be in the mind of anyone going to work in America from Europe, or vice-versa, really different customs there.
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