Asking for a raise as an independent contractor?

[BlueHouse]

For 5 hours per month, I wouldn't do anything that requires additional thought or effort outside of hourly.  Don't slam hourly.  When I first started billing hourly, I looked back and realized what a fool I'd been for so many years.  I'm that type of person who used to have imposter syndrome.  Never felt like I did enough.  Always the first in and the last out.  Then I started working hourly and started making BANK.  When people asked me to do some extra work, I no longer resented it if I could make another couple hundred for a few hours work. 

Does she want to work more?  Or just get fairly compensated for her time?

I agree... 3X the rate of an hourly W-2 employee is the going rate for independent. 

[jeromedawg]

lol so they're having a meeting right now over Ringcentral (I'm listening in) and it's basically a performance review hahaha. She "scored" her in various categories and then I just heard her state that her hourly rate/pay is increasing from $25 to $28... then she started talking about the bonuses and what her hourly rate is factoring the bonuses in. I guess she feels like she's being extra generous with her and continues factoring the bonus into her overall pay. She said bonuses are based on performance of the company...except for the fact that she gets paid the same bonus every year and my wife for a fact knows the financial planners' business and income has increased year over year.

I mean, it is a flexible and fairly low pressure gig although sometimes I'll observe my wife stressing over things and she'll stay up at night to complete various tasks and what not.

In any case, the decision on what to do is ultimately hers... to me it sounds like a very closely tied work relationship where the financial planner sees it that way and not as a "contractor" relationship - perhaps this is for various reasons that I can't quite pinpoint.

[Fru-Gal]

This woman needs a visit from the IRS! Literally have friends who had to go to court to prove they weren’t employers because a contractor claimed wrong on their taxes. This woman is *intentionally* overstepping.

It’s a power trip. Oh well. Everyone wins in relationships. Clearly your wife is currently gaining something emotionally for considering herself powerless. No responsibility, no authority. There’s a lot to be said for that. If it doesn’t bother her then carry on.

[Fru-Gal]

Also food for thought, the last 4 years have seen an unprecedented bull market, likely hugely benefiting the financial planner’s business.

[jeromedawg]

This woman needs a visit from the IRS! Literally have friends who had to go to court to prove they weren’t employers because a contractor claimed wrong on their taxes. This woman is intentionally overstepping.

It’s a power trip. Oh well. Everyone wins in relationships. Clearly your wife is currently gaining something emotionally for considering herself powerless. No responsibility, no authority. There’s a lot to be said for that. If it doesn’t bother her then carry on.

Yea it's unfortunate...  I think it's one of those things where my wife isn't willing to "right the wrongs" at the professional level because it would jeopardize the friendship. Part of me thinks the financial planner knows what's up but the other part me thinks she's partially clueless on the business side of things...which is also kind of hard to believe considering she's a principal at a financial firm yet independently running her own business. I guess we can all be surprised every now and then though, right?

I think the only thing that will draw her away from this is if we start our own business venture or she finds something else better paying/more lucrative that falls into her lap and occupies her time where this becomes second priority. At that point maybe she'll realize that she needs to tell her friend to pay up or she's going to fully pull out of helping her. Dunno if that day will ever come...

[Fru-Gal]

I like where you’re going with that thinking. It’s not so much about rectifying this situation, it’s more about replacing it with something much better.

[jeromedawg]

I like where you’re going with that thinking. It’s not so much about rectifying this situation, it’s more about replacing it with something much better.

Another new piece of information my wife told me last night is that the other assistant lives in another state (presumably in a lower cost of living area too... I think Texas. I was assuming she was in CA - my wife said she actually moved to SD but hated it and moved away lol). She reiterated that she would not feel comfortable paying my wife a rate higher than that assistant even if she works significantly less. She also kept on talking about her bonuses with the context of my wife's overall pay saying "so with the bonus, you're at $36/hour" or something like that). All of these things just sounded like lame excuses. I told my wife last night that's fine if she wants to keep working for her but to realize that all these things are excuses that her financial planner friend is giving her and that she's removing my wife's power and ability to negotiate by reframing this whole discussion in the context of "raises" and giving her the least amount possible. In her "performance review" she gave my wife a 58/60 and docked her two points (more excuses): one in "taking initiative" (e.g. asking the financial planner if she could use help in other areas and being proactive) and then another in "using her judgement" (e.g. being more decisive about things) - my wife refuted her on both points saying that she has repeatedly asked the financial planner if she needs help in other areas and has offered herself in case there's any other work. And for using her judgement/being more decisive, she only seeks clarity guidance on something new that she hasn't seen before (I mean, maybe this one is barely legitimate). Anyway, "performance reviews" seem more appropriate for employees/employers rather than clients/contractors. The whole thing feels like the financial planner writing a Yelp review about my wife and then going over it with her lol.

Ultimately, I know my wife doesn't care as it's just work and she's willing to get paid whatever and now that it's a slight bump she's even more ok with it. But I could tell she was irked about not getting that perfect score (more than getting "full rate approval"). The thing is, if the financial planner gave her a perfect score, it would have justified the full $30 rate amount so she *had* to give her lower marks to justify the partial rate increase acceptance (not raise, even though I'm sure the financial planner wants to think of it in those terms). Anyway, I've done my part to "plant the seed" (of awareness). Now it's just how my wife takes and runs with it (or not). *shrug*

[Captain FIRE]

Yes, a performance review for a contractor seems inappropriate, and one where she is dinged for not taking initiative by asking what else she can do even more so. She's contracted for certain work; she does not need to take on more if she doesn't want to.

[dandarc]

Bonuses and performance reviews that impact pay for an IC? Boss lady / firm just begging to get a visit from a labor-relations board or whomever. I know there's always grey area (actually this grey area has enabled my whole career really - no way I'd do what I do for state-employee pay, benefits, bullshit here), but from what you've shared, she really seems to be treating your wife like an employee and not a contractor. Kind of thing that makes you wonder how many other people may be mis-classified.

Obviously if your wife is happy with the whole deal then that's what matters most - not like anyone is going to show up to call them on this if nobody complains about it.

[Psychstache]

Bonuses and performance reviews that impact pay for an IC? Boss lady / firm just begging to get a visit from a labor-relations board or whomever. I know there's always grey area (actually this grey area has enabled my whole career really - no way I'd do what I do for state-employee pay, benefits, bullshit here), but from what you've shared, she really seems to be treating your wife like an employee and not a contractor. Kind of thing that makes you wonder how many other people may be mis-classified.

Obviously if your wife is happy with the whole deal then that's what matters most - not like anyone is going to show up to call them on this if nobody complains about it.

Actually, it seems like she is doing the thing lots of shady employers do: treating her like both depending on which scenario benefits the employer most.

[dandarc]

Bonuses and performance reviews that impact pay for an IC? Boss lady / firm just begging to get a visit from a labor-relations board or whomever. I know there's always grey area (actually this grey area has enabled my whole career really - no way I'd do what I do for state-employee pay, benefits, bullshit here), but from what you've shared, she really seems to be treating your wife like an employee and not a contractor. Kind of thing that makes you wonder how many other people may be mis-classified.

Obviously if your wife is happy with the whole deal then that's what matters most - not like anyone is going to show up to call them on this if nobody complains about it.

Actually, it seems like she is doing the thing lots of shady employers do: treating her like both depending on which scenario benefits the employer most.

Well if you do that to a significant degree you really should be paying as an employee. You have to justify that this person is a contractor whereas the assumption is that they are an employee. But at the end of the day, if the contractor / employee doesn't care enough to complain about it, and you're not big enough to get additional scrutiny because of that, then you can do whatever you want.

[Psychstache]

she really seems to be treating your wife like an employee and not a contractor.

Actually, it seems like she is doing the thing lots of shady employers do: treating her like both depending on which scenario benefits the employer most.

Well if you do that to a significant degree you really should be paying as an employee. You have to justify that this person is a contractor whereas the assumption is that they are an employee. But at the end of the day, if the contractor / employee doesn't care enough to complain about it, and you're not big enough to get additional scrutiny because of that, then you can do whatever you want.

Completely agree.

[gooki]

Lolz at the performance review. I'd be nopeing out of any future performance reviews as an IC, and rasing my rates 5% every year.

No annual performance reviews and no writing goals is one of the best things about being an IC.

[lifeisshort123]

Yeah, the performance review is nuts.  If she goes, I hope she’d at least bill her usual rate for this.  But honestly, there is such a massive misclassification of employees and contractors, I am not surprised by this.

[Villanelle]

It seems like your wife is generally okay with all of this.  I wouldn't be, but clearly it serves her better in some way to continue this than sever the working relationship.  So at this point, I'd step out of it.  She has all the information and has made her choice.  Since it's not damaging her in an significant way, I'd let it be. 

[jeromedawg]

It seems like your wife is generally okay with all of this.  I wouldn't be, but clearly it serves her better in some way to continue this than sever the working relationship.  So at this point, I'd step out of it.  She has all the information and has made her choice.  Since it's not damaging her in an significant way, I'd let it be.

She pretty much is. From this point I'll just be 'gently' reminding her about her financial planner's friends semi-shady tactics and that she should consider spending her working time elsewhere especially if I ever hear her complaining about something. I think she 'appreciates' the flexibility of the role and I think she also sees it as more of a way to "help her friend" than anything. For some reason, this whole thing reminds me of how friends selling MLM often capitalize on and exploit their close network of family and friends to make their money. It's very self-serving and often these people are too short-sighted to even realize that.