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Not quite, taxes are actually higher if you are self-employed. You have to pay SECA, which effectively includes the portion that your company would have paid ot
by lawnchair_larry 6y ago
Not quite, taxes are actually higher if you are self-employed. You have to pay SECA, which effectively includes the portion that your company would have paid otherwise (on top of the amount that they withhold and pay on your behalf).
- ThrustVectoring 6y agoThat's not taxes being "actually higher", that's taxes being paid in a way that increases the total cost of hiring someone without showing up anywhere on the pay stub of full-time W2 employees. Like, it changes the numbers to something like "$9k with $1k withheld and $1k of employer taxes" vs "$11k with $1k of income taxes and $1k of 'employer' taxes that you now have to pay"