Re: Agencies...??: LONG

["Nina L. Panzica" <panin -at- MINDSPRING -dot- COM>]

Someone emailed me the following questions in response to my agency post.
I'll do my best to answer them, below.

> Are you still working as a contract
>writer?

Oh, yes. I'll probably never go back to fulltime work, unless the economy
changes drastically and forces me to.

>Do you ever go though unemployed spells?

Yes to that one, too. I need to work primarily out of my home office.
Although employer attitudes toward telecommuting are slowly changing this,
offsite contracts are still relatively hard to find in the technical
writing world. Also, the rate I charge is on the high side, and that also
means I wait longer.  I often wait three weeks to a few months longer
before I find a contract that fits my needs than I would if I were willing
to work onsite, however. If I were also willing to accept a lower rate, I'd
probably not have to wait longer than two weeks between contracts, at least
in my area. Technical writing seems to be going through a mini-boom at this
time in the Southeast.


Because I have debated
>making the move to contracting, even though people think I'm crazy
>(leaving stability for potential instability, no benefits, etc.). But I
>figure I'm young and I only live once. heehee

Hey! I'm _old_ (39), and I love contracting! There really isn't much lack
of security involved, and in fact in today's market you could make a good
argument that there is less stability in fulltime work, thanks to
downsizing and all that stuff, than there is in contracting. I've never had
too much trouble finding work when I wanted it, even though I am pretty
picky. You do have to get used to looking for new work more frequently than
permanent employees do: some people find it difficult to impossible to get
used to this. And you have to start and maintain a network composed of
agencies, other writers, contacts at former clients, and writing groups,
all of whom will, in the long run, help you to find positions more quickly.
This takes work, but it's worth it. I've found that I the money I earn from
contracting more than pays for providing my own benefits (like various
types of insurance). Other experienced contractors in your area should be
able to tell you where to get good deals for insurance and things like that.

>Do you always get work through an agency or do you ever find clients on
>your own?

Although I don't always get work through an agency, I don't usually find
clients on my own. Usually they find me.  I attribute most of that to
having a good local network. All the direct contracts I've done have come
about through chance (such as another writer calling me up and saying her
client needs a second writer). If you get involved in a writing
organization and people get to know you, it eventually pays off. They
remember you and refer you when they know of companies looking for writers.

>If so, does that mess you up at tax time?

This is a complex subject, but I'll give you the basics and tell you where
to go for more detailed information. You have to be careful, depending on
the kind of contract that your client or agency wants you to do. There are
two basic types: W2s, where you act as a temporary employee of the client
or the agency, and 1099s, where you are an independent consultant and are
responsible for paying all your own taxes, including that hefty social
security tax (the numbers refer to the IRS form that reports your wages).
Obviously, the W2 form of contract is similar to what you're used to now:
the taxes are taken out for you and you don't have to worry any more about
paying them than you would in your permanent job.

The second kind of contract, done on a 1099 form, is one in which you have
to be careful to make quarterly tax payments and still save up for tax
time. While that percentage works well for me, I don't know if it would for
you.  When you start to contract, whether you do 1099 or W2, it becomes
important to start saving receipts and itemizing. If you buy a new software
package for your home PC that will be used in the course of your business,
it's a tax receipt. Business calls made from home are deductible.  If you
buy paper for your home printer, it's at least partially a tax receipt. And
so on. Saving these receipts can save you a lot of money at tax time. I
don't do my own taxes: it's too complicated, and I have no desire to learn.
A good CPA or other tax person, however,  can tell you what sorts of
receipts you should save and which you shouldn't.

There is a third situation, where you are an incorporated writer. Tax
filing and the paperwork you have to keep before taxes are due becomes more
complicated then. I am not incorporated, although many of my professional
acquaintances are, because I have decided that so far the additional tax
savings are not so substantial that they would be worth the hassles of
incorporation. Other writers, in different situations, prefer
incorporation. While incorporating is not something you need to be too
concerned about in your first year or so of contracting, you should at some
point  find out more information about it from fellow writers who are
incorporated and from a CPA. Ask the writers why they incorporated, and
find out what benefits it gives them. If your situation is similar enough
to theirs, you may want to incorporate, too.

People, I'm not a tax expert. If I've given this person advice that you
think is incorrect or could hurt her, please speak up.

>I feel like I'm
>ready to make the leap into contracting (been tech writing for 5 years),
>but I'm just not sure of the logistics. For example, if I do it on my
>own, I know nothing about writing up contracts and all that legal stuff;
>although I do have some potential clients lined up already.

The best way to learn about all of this stuff is through networking with
other writing contractors. Join a writing organziation like the STC, and go
to the contractor meetings, if there are any, in your area. It's also
valuable to join the national STC contractors and consultants group, and
access their resources. For more information about this group, see their
Web site at:

http://stc.org/pics/cic/index.html

Find a writer who seems experienced and knowledgable, and, after a meeting,
ask him or her for a sample contract that they use which you could imitate.
I got my sample contract from an ex-client. It isn't a perfectly complete
contract, but it's solid and contains all the important clauses that I need
to protect me. Often a client will already have a standard contract that
they use with all their consultants, and they will want you to sign that.
But if they don't, it's good to have one that covers the bases (i.e.
protects you) to show to them. Contracts are tricky things, and not
something you want to do wrong, so I suggest you show any potential
contract you may use to specialist in that type of law. I think I saw some
information about contracts recently on a Web site. I think it was the
Writer's Union site. You may want to take a look over there, perhaps in the
special SIG area devoted to technical and business writers, and see what
they say about this:

http://www.nwu.org/nwu/

As far as I know there isn't much other legal stuff that you need other
than a good contract. There are certain paperwork forms that are useful to
have, such as an invoice to bill clients with if you are in a 1099
situation and a form with which to report your work hours on (what you did
and when), if your client requests this, but that's about it. Again, your
local group of contractors should be able to provide you with the forms
some of them use for this type of paperwork. Then, design your own forms,
based on their templates and your specific reporting or billing needs.

Here are a few more things about agencies to keep in mind. A contracting
agency will always have a contract for you to sign with them. If they
don't, try to find out why, and insist that if you work with them, they
will need to sign your version of a contract, if nothing else. Do not do
contracting work without a contract. Until you are familiar with the
phrases and the wordings common to such contracts, be sure to have someone
who understands contracts, preferably a legal professional, look over any
contract before you sign it. Just take it home with you, and tell the
agency that you need to read it over carefully before you sign. Mark the
places in the contract that you do not understand, and ask your expert
about these.

It's common and expected  for an agency to have in its contract a clause
that says that you cannot directly seek work with a client of the agency's
whom you have interviewed with for a specific amount of time after the
interview (6-12 months is common). The clause protects the agency from the
possibility that you and the client will negoitiate behind its back so as
to hire you directly and leave out the agency. Usually this clause does not
apply to your eventually working permanently with the client, but you'll
need to discuss that end with the agency if you think that's a possibility.
I've seen some agencies word this clause to say that you can never, ever
contact a client of theirs directly. Be sure you know what that clause
actually says before you sign their contract.  And then keep your word
about this, no matter how tempting it is later to recontact an old client
of yours before the specified waiting period is up.

Finally, a few agencies will want to hire you as their permanent employee
even though they send you out to other client sites to work. During "down
time" between contracts they might find busywork for you to do in their
office. The security of this kind of arrangement can seem tempting, but it
also usually has considerable disadvantages, the primary one being that
you're once again a permanent employee earning the lower rates that
permanent employees earn, with no hope of a big jump in income if the next
client is willing to pay more. Often you're paid on a salary schedule with
no extra pay for overtime hours, and that's a dangerous position to be in,
as contractors brought in to help out with a client's project are often
faced with pressing deadlines that require large amounts of overtime. (In
fact, contractors often specify their own overtime rates as well as their
regular hourly rate. Some charge time-and-a-half for overtime; some charge
just straight time. The point is, as hourly workers they are compensated
for it in some fashion.) This can add up to considerable money in the long
run, and it would be a shame not to get it if you are putting in the extra
work.  Finally, if you don't like the agency or have a bad experience with
one of their clients, you don't have the reassuring knowledge that "soon
the contract will be over, and I can move on." Instead, you have to quit,
and if you do so, you may not be able to get a vaulable good reference from
them for future work.

Before looking for contract work, it helps to have a home answering machine
to catch messages for you that you might not be able to take at work.  A
home fax machine is also invaluable, especially if you decide to work with
agencies: as these folks often want to see your resume _now_, as in five
minutes ago, since they may want to get it over to a client ASAP.

Nina P.



____________________________________________________________________________
____

Nina Panzica
Masterpiece Media
(404) 237-7889
Can't reach me at the above number? Try my pager: 404-596-7889
mailto:panin -at- mindspring -dot- com
http://www.mindspring.com/~panin/

Links to other Technical Writers:
http://www.mindspring.com/~panin/writers.htm

 TECHWR-L (Technical Communication) List Information: To send a message
to 2500+ readers, e-mail to TECHWR-L -at- LISTSERV -dot- OKSTATE -dot- EDU -dot-  Send commands
   to LISTSERV -at- LISTSERV -dot- OKSTATE -dot- EDU (e.g. HELP or SIGNOFF TECHWR-L).
  Search the archives at http://www.documentation.com/  or search and
browse the archives at http://listserv.okstate.edu/archives/techwr-l.html