4 ms·
In my particular case I get paid around $90/hr ($135/hr for overtime, plus paid major holidays). Which comes to around $180K/yr. The full time position I was of
by rorrr 16y ago
In my particular case I get paid around $90/hr ($135/hr for overtime, plus paid major holidays). Which comes to around $180K/yr. The full time position I was offered is $130K/yr. There's no way in the world vacation + health insurance is worth $50K.
So if I take a month off, I lose $14.4K ($90 * 160 hours). A decent insurance PPO plan is $1100/month for me any my wife. So that's another $13.2K. So the total is $27.6K. And I don't think that many FTEs have a month of paid vacation.
- wanderr 16y agoPlus another what, $13k, for self-employment taxes?
- nl 16y agoWhat's a self-employment tax? The way it works here (Australia) is a contractor charges GST (basically a value-added tax) to the employer of 10%. The 10% is standard, so people don't usually include it in discussions of their rates (ie, if he is getting $90/hour, then the company is paying $99/hour). After that you can handle the money how you like - if you are smart you can setup a company or trust so you only pay the company tax rate on most of your income. At worst you just pay yourself the income, and so you are taxed as though you have the $180K income.
- OJ 16y agoThe company thing still comes with a caveat in that you have to prove that you're not just using it as an umbrella to reduce your tax. There are a set of tests that a company goes through at tax time, and they have to pass them in order to be considered a proper company (the 80/20 rule is one of those tests).
- wanderr 16y agoIn the US, employers pay a medicare and a social security tax. If you are self-employed, you have to pay those taxes in addition to your regular taxes, because you are the employer too.
- rorrr 16y agoMy current contract is W2-hourly. I'm pretty sure I get taxed just as a regular employee.