[runT1ME]

> The day rates look high, but they have to pay self-employment taxes and health insurance

Most SWEs doing 'contract work' aren't actually 1099 contractors, what it means is they work for an intermediary and then 'contracted out' to a big company with a recognizable name (Google/BofA/Verizon/IBM). These jobs are W2 so you don't pay self-employment tax, they usually have mediocre insurance options, and you lose your job as soon as the work dries up.

It's simply a way for a company to staff up quickly without going through as strict of hiring committee and having any obligation to keep said staff around if plans change.

It's often easier for a department to get a req for a senior/staff contractor (and make salary exceptions) than a FTE, so what happens is departments will offer 200, 250 an hour for temp work but only able to hire engineers for 150k a year because their 'employee' req is slotted lower.