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Health insurance is a problem. Solve it before you move to contracting. Taxes, on the other hand, are completely skewed in favor of consulting. Look at 401k c
by phonebanshee 7y ago
Health insurance is a problem. Solve it before you move to contracting.
Taxes, on the other hand, are completely skewed in favor of consulting. Look at 401k contributions, for example. The limit for your contribution is the same, but your company can contribute a lot more on top of that. And talk to your accountant about how you decide on your salary; that's an important number and it's not straightforward to decide what it is. (It's certainly not your entire income)
- charlieflowers 7y agoIn other words, only part of your income is considered "salary" and thus subject to payroll tax. This often results in a significant tax reduction.
- dublin 7y agoOr you can just do without healthcare. While there is some danger in that, it's considerably less dangerous than driving without seatbelts, which everyone used to do. I don't recommend no healthcare coverage, especially if you have a family in the childbearing years, but it's unlikely to be the end of the world, either, unless something really bad happens...
- rorykoehler 7y agoThis has to be the worst advice I've ever read in this site