Moonlighting...

[kainoa]

Hi Guys,

 

I need some opinions/advice on the issue of moonlighting. I'm the graphic designer at an engineering/planning firm in Hawaii. My directors recently started offering web/graphics services to our sub-consultants as well as to other firms (we completed 2 websites in 2 months so far). However, I've been providing these services on a freelance/contract basis (unbenounced to them) for about 6 months now. Although I do graphics for a variety of businesses, I also target architectural and building industry firms. By doing this, am I doing something unethical?

 

The way I've been thinking of approaching this is that if a company outside of our industry approaches me for work directly, I'll definitely take the offer. However, I'm not sure how to handle offers from, say an arch firm. Also, a fellow co-worker gave me a lead to an engineering company on the mainland seeking graphics work. Do I refer it to my supervisor, or can I consult with the company independantly?

 

Although, I could definitely use the money by working independently, I do not want to do anything considered unethical. Hawaii's a very small place, if I started to do independant graphics work for other firms my superiors would find out sooner or later.

 

Anyways, thanks in advance for any advice.

[andymcnair]

Hi Kainoa, I've been in the same position and know its not easy. You basically have three choices.

 

The first is that you carry on as you're doing and work on these 'home' projects in your spare time. If you do this just make sure that you're a recognised company or freelancer for tax purposes. If your bosses do find out then they may take an objection and report what you're doing. They will be concerned about your commitment to the company and if you are using company time and resources to your own benefit. If this is the case then they may fire you.

 

Second option would mean you're serious about staying in with the company. Tell them straight that people are approaching you personally to do freelance work and that you would like to bring the work into the company - for a fee. By doing so you're showing an interest in the companies welfare and want to make a go of working up the hierarchy, especially if you're doing the groundwork and bringing in a ready made client. There are benefits to this as you make a finders fee for bringing in work, you don't have to worry about additional taxes and insurance, you have a team to back you up and your evenings are once more your own.

 

Third option is the most exciting and most terrifying - use the jobs your are taking as a base for your own company. By far the most difficult and challenging of options but certainly the most fulfilling,

 

good luck

[kainoa]

Thanks for replying Andy. That's some really good advice and I appreciate it. But I have to ask, what would you do?

 

As for the fist option you've laid out, I'm a fully legitamate freelancer and I don't use any company resources. My superiors recognize that my skills go far and beyond what is necessary for this firm. Although they wish for me to stay, they actually expected me to leave and find something more challenging. Thus, because I decided to stay for as long as I have, I believe in their eyes my committment isn't in question.

 

As for the second, this is what I'm thinking of doing. However, since I'm on the support side of the firm, there's not much more room to move up to. CAD/Gfx manager perhaps. Thus, I'm only half-serious about staying any longer. Also, I'm not quite sure how to ask for a finders fee (still havn't figured out about raises).

 

As for the third, I don't think I have what it takes to establish and run my own business. Hawaii isn't really a gfx business-friendly environment right now.

 

Thanks again for the reply Andy! Really helpful.

[andymcnair]

Well, I might be tempted to negotiate with the employer to expand their work base so that I could do this type of work in their office. This way I'd be able to use all their resources, get a payrise and enjoy the weekends. If they're willing of course. Its the comfy option. And for a finders fee - just ask. Its generally a small percent of the total budget sum.

 

In reality though I would probably work like a demon during all my spare time, take on all the jobs as a freelancer and start up a company.

 

I doubt this is good advice but Its almost 4 years since I made this decision and I don't regret it. We started out on the back of one job and we're still going - its fun but hard. For the first year and a half we worked at home until we were able to afford a small office where we are now. It did eat most of my social life but it was my baby. (Now my baby boy eats ALL of my social life so no change!)

 

Anyway, I hope it goes well with you whatever you choose, keep us updated.

[mzagorski]

Kainoa,

 

Well.. having worked in Honolulu for an arch firm and done some 3d.. I thought Id reply too

 

The arch company I worked for had an employee handbook and in it, it says that I wasn't allowed to do Moonlighting. So see what your companies stance is on this already!

 

So.. your registered as a tax paying freelancer?

 

I think that the previous reply about approching your firm and trying to get a finders fee is a good plan. All depends on your bosses.. but Hawaii is quite a chilled place from my experiences...

 

I could be back in Hawaii quite soon so we'll have to meet up sometime eh!

 

Good luck anyways!

 

Mike

[kainoa]

Hey Mike,

 

Thanks for the advice.

 

So.. your registered as a tax paying freelancer?

I sense a little sketicism. All my backoffice work (contracts, billings, payments, taxes, insurance, etc.) is handled by a third-party company. So technically I'm a w-2 employee of that company. So I have all the freedoms of freelancing but with the backoffice support of a corporation. They send me a check with all the right deductions and all the tax work I have to worry about is the normal 1040 in March. Anyone else have a setup like this?

 

Let me know if you're ever in town!

[Ernest Burden III]

All my backoffice work (contracts, billings, payments, taxes, insurance, etc.) is handled by a third-party company. So technically I'm a w-2 employee of that company.

That is a very interesting arrangement. It must mean that the company, not you, gets paid. In a literal sense you are NOT moonlighting, you simply have two jobs. Your arrangement sounds like one of the most responsible, level-headed approaches to working in this field I have ever heard of.

 

I have my business set up as what in the US is called an S Corporation (O'Really, inc) which is a small business type. I use that name for a side business that sells prints of architectural images (still in developement--ARGHHH) and have re-named my rendering business portion to Acme Digital. So I, too, am an employee of a company that I happen to own. But then I have to do all the paperwork. Your approach is a nice alternative. Sure it costs you some money, but my way costs me lots of time and distraction from what I do to earn a living.

 

But your situation still comes down to the terms of your main employment. Let us know how it gets resolved.

[kainoa]

The fee my billing company charges is 4% for the first $125k of earnings (as if). Then it decreases to 1.5% for anything above it. Sounds pretty reasonable to me. I know very little to nothing about taxes, incorporating, etc...so something like this is a life saver for me.

[Ernest Burden III]

The fee my billing company charges is 4% for the first $125k of earnings (as if). Then it decreases to 1.5% for anything above it.

That is below what accounting costs me, and my accountant usualy underbills me. A simple mistake on a state filing can cost you hundreds of dollars as a penalty. But you are free to think about your work, not getting the paperwork processed right. Nice!

[Chad Warner]

Hi Kainoa, is the third party that handles all of your paperwork a local company, or something I could look into here in GA? It sounds like a great setup.

 

-Chad

[kainoa]

I go through a local company here. But there are a few online companies that offer the exact setup. This is the one I came across the most: myBizOffice.com. There are a few others out so you can try a search of similar companies.

 

PS. I visited your site before Chad, nice work!

[Josh1587140445]

What do you guys mean by a "recognised company or freelancer for tax purposes."?

 

Because currently I do web pages on the side amd I do have a fictious name registered with the state. So besides that, I just thought you had to claim your income on your taxes.

[Sawyer]

I am in a simular situation where I work 40 as a cad lad and then do another 20-30 (per week) on the side. I have my own biz (sawyer fischer rendering) and I would love to set aside the 40 hour drafting stuff for more 3d but I am not there yet.

When I started at this job I told them that I would work on the side for them and whomever (the employee handbook said that they wanted no freelancing but I was honest and they acutally need what I do). My last performance review I was asked if I thought I wanted to continue with cad or 3d and I said 3d. So I am on the level with everyone and I was actually offered an office with my current company so I could hang my sign next to my current employer but as a completely seperate entity.

 

side note (really look into quickbooks. I have qb pro and it is a must!)

 

kainoa- seems like you are in good standing and are a value to your company. Talk it over and be clear what you want. Stuff like this could explode and be bad but there is no reason that it can't be a good thing. The only thing that I have trouble with is lack of sleep. :ngesleep: :ngesleep:

[kainoa]

Sawyer,

 

Thanks for the advice. It sounds like we're on the same kind of boat but yer a little further down the river! Thanks again.

[Chad Warner]

Kainoa-

 

Thanks! I try, but I am nowhere near as good as the majority of the people here.

 

-Chad