Employment Options

Employment/Contractor Compensation Options

 

 

Employment

Contractor

 

Model

 

Salary

Base Plus

Independent Contractor (IC)

Employment Category

 

Employment/W2

Employment/W2

Contractor/1099

Compensation

Annual salary

 

Frequency: Every two weeks

Base salary plus hourly rate for billable client hours

Frequency:  Every two weeks

Hourly rate for billable time

 

Frequency: Paid twice per month.

 

Eligible for Bonus

Eligible for bonus twice per year. A discretionary bonus is paid in June and December.  Employees must be with the company a minimum of 6 months to be eligible.

 

No

No

Benefits - General

Full-time Regular employees are eligible for all Company benefits.

 

A benefits summary is available.

 

Full-time Regular employees are eligible for all Company benefits.

 

A benefits summary is available.

Benefits are NOT available to ICs

Benefits: 

Paid Time Off (PTO)

&

Holidays

4 weeks of PTO, plus 9 paid holidays

Eligible to take 4 weeks of PTO and 9 holidays. 

Since there are no billable hours on these days employees will receive compensation base salary only when taking PTO or holiday time.

 

Not Applicable:

 

Per TSA (contract), ICs are paid for billable time only.

Taxes

NHA pays employer taxes and deducts employee portion based on W4 allocation.

NHA pays employer taxes and deducts employee portion based on W4 allocation.

As an independent contractor or someone who is self employed, you are responsible for both the employer and employee taxes (As defined W9).

 

Tax Assistance

The Company will provide a state income tax preparation allowance at the end of the year equal to:

-         

$75 for the first out of state filing;

-         

$50 for each additional out of state filings.

 

The Company will provide a state income tax preparation allowance at the end of the year equal to:

-         

$75 for the first out of state filing;

-         

$50 for each additional out of state filings.

 

Not Applicable

Risk vs. Reward

As a salaried employee you receive a consistent, predictable compensation amount each pay period. 

 

It is not based on project or billable hours.

 

 

 

 

 

 

 

 

 

As a base plus employee you have the potential to earn higher compensation than the Salary Only option, but there is increased risk.

 

When a consultant is not billable to a client, they receive only their base salary and benefits.

 

This applies to anytime the consultant is not billable, i.e. vacation, professional development, bench time, etc.

An IC has the highest gross earning potential, but is only paid when they are engaged/working.

 

 

 

 

 

 

Billable hours expectations

Client engagements typically expect an average of 40 hours work/billable time per week.

 

Employees receive the same compensation independent of how many hours (billable or non-billable) they work.

 

Client engagements typically expect an average of 40 hours work/billable time per week. 

 

The contract terms will typically identify if we can bill more than 40 hours per week. 

 

Consultants are paid an hourly rate for all billable time only.

Client engagements typically expect an average of 40 hours work/billable time per week. 

 

The Work Order terms will typically identify if a consultant can bill more than 40 hours per week. 

 

Consultants are paid for all billable time.

Able to accept projects independently or through other companies

No

Exclusivity with NHA as outlined in the employment agreement.

 

 

No

Exclusivity with NHA as outlined in the employment agreement.

 

There is no exclusivity requirement.

Yes, provided they do not interfere with your contract commitments.


There is a non-solicitation and non-recruit requirement.

 

Professional Development

Compensated at the same level.  No change.

Compensated at the base salary level.  Professional development is not billable.

No compensation.

Travel

Travel expenses are reimbursed as incurred.  Expense reports are submitted weekly and payment is made twice per month.

 

Consultants are responsible for making their own travel arrangements.

 

Travel time is not billable unless productive client work is being done.

 

Same

Same

Expenses

Travel expenses are reimbursed twice per month, assuming timely submission.  

 

Most clients reimburse for actual expenses.  Consultants will be made aware of any exceptions before starting a project.

Same

Same

Project Selection

NHA will identify projects based on a number of factors including: availability, client needs and the consultant’s ability to be successful, client contract requirements, opportunities to build the consultant’s skills, travel requirements, and consultant’s preferences.  We do our best to balance these to satisfy the needs of the consultant and client.

Same

As an IC, consultants have the most flexibility. They are able to determine independently, based on the projects available to them, which to pursue and which to pass on. Communicating your priorities and requirements to NHA will help us to work efficiently together.

Changing Compensation Plans

NHA has permitted this on a very limited basis with prior approval from the consultant’s Manager and Vice President. 

Same

 

Please Note: Base plus employees accept the risk associated with potential bench time. Going to the bench is not considered a reason to change compensation plans.