about contracting

Coala

hi everybody,

could somebody please explain what means contracting? heard many times that or that guy took up his first contract. Is it like self employed and doing bookkeeping for a company on contract ? And what connection has contracting companies (accounting services?) with that? I am going to set up my company in the future thats why asking all this stuff how to start and what it all means. Sorry for the language - im not originaly from Ireland.
Thanks for replies

mik_da_man

Currently I work as a contractor.

I work in IT consulting and companies hire a "Contractor" when they need specialist services for a limited time. eg a project or to cover some type of leave.
In my line of contracting most companies require that you have your own company mainly in order to make the separation between an employee and a company providing a service. They can get rid of you easier and don't have to pay sick pay, PRSI and benefits.

Hope that helps!

Mik

Coala

well i understand that. But why would contractor use another Contracting company?

mik_da_man

I suppose to make things easier.
Less paperwork

Coala

so it means. I do job for somebody and if im too lazy somobody do job for me ?! good