4 ms·

> only paid $45,000 a year Reading this kind of thing on HN makes me feel ill; my W-2 says $47k. Maybe I need to make some changes.

by xnxn 16y ago

viggity 16y ago
Try contracting. Seriously. Go to a local user group and talk with people who contract and see what the going rate is in your area. Its probably 2x to 2.5x of what you're getting now.
- AretNCarlsen 16y ago
  Though you have to pay your own taxes -- probably 30%, in the end -- and your own medical.
  - ewams 16y ago
    You pay your own taxes now.
    - kragen 16y ago
      In the US, there's a Social Security payroll tax (previously 12.4%, now 10.4%) that's split between employer and employee. Self-employed people pay it themselves; their clients don't.
    - christonog 16y ago
      I think what he meant was that you have to consider a hefty tax burden come April 15 because, as a contractor, you don't get taxes taken out of your paycheck. This is where having a good accountant and knowing what expenses you can deduct comes in (to reduce your taxable income). If for nothing else, you should have a business just so you can claim more expenses and reduce the amount you have to pay Uncle Sam (from my understanding, all you need to have is a profit motive -- not necessarily profits).
    - aacook 16y ago
      Yes... the key is sending in the estimated payments. If you fall behind or (worse) wait until the end of the year, you'll be stuck with a huge tax liability.
  - danssig 16y ago
    My tax guy always tells me: the US hates employees. There are more loopholes if you contract or (even better) have your own business (which could be a contracting business). Plus you don't get taxed at source so you can take that extra 30%+ you get each paycheck to pay a tax person to figure this all out for you in time to save up for the tax hit at the end of the year.
eof 16y ago
renegotiate/find a new job? With 1.5 years of 'starving freelance' experience I got my first programming job at 55k and was able to negotiate to 70k within 6 months.
tjarratt 16y ago
Really depends on where you work. There are some managers that make $47k in some parts of the US and live very comfortably. Aside from that, contracting can help get bump your salary up. Fresh out of college I was making less than $47k and then easily tripled my salary within a year of contracting (although I was working insane hours and basically used all of my allotted overtime hours). It isn't always great for mental health or work/life balance, but it can be a great shot in the arm in terms of providing needed work experience and money.
- xnxn 16y ago
  Thanks -- I've toyed with the idea in the past, and I think it might be time to just dive in. So if anyone has resources for a web developer in Portland looking to break into contracting, I'd love to hear from you.
wtracy 16y ago
Do keep in mind that "most" programming jobs are in areas with high costs of living: San Francisco, San Jose, and New York. That said, take a look at this: http://www.payscale.com/research/US/Location=Portland-OR/Salary http://www.payscale.com/research/US/Location=Portland-OR/Sal... The median salary for an SE in Portland is $67k. So, yeah, it's negotiating time.
xyzzyz 16y ago
They offered me more ($55k) on my internship. I really think you should earn more.

> only paid $45,000 a year Reading this kind of thing on HN makes me feel ill; my W-2 says $47k. Maybe I need to make some changes.

by xnxn 16y ago

> only paid $45,000 a year Reading this kind of thing on HN makes me feel ill; my W-2 says $47k. Maybe I need to make some changes.

viggity 16y ago

Try contracting. Seriously. Go to a local user group and talk with people who contract and see what the going rate is in your area. Its probably 2x to 2.5x of what you're getting now.

AretNCarlsen 16y ago
Though you have to pay your own taxes -- probably 30%, in the end -- and your own medical.
- ewams 16y ago
  You pay your own taxes now.
  - kragen 16y ago
    In the US, there's a Social Security payroll tax (previously 12.4%, now 10.4%) that's split between employer and employee. Self-employed people pay it themselves; their clients don't.
  - christonog 16y ago
    I think what he meant was that you have to consider a hefty tax burden come April 15 because, as a contractor, you don't get taxes taken out of your paycheck. This is where having a good accountant and knowing what expenses you can deduct comes in (to reduce your taxable income). If for nothing else, you should have a business just so you can claim more expenses and reduce the amount you have to pay Uncle Sam (from my understanding, all you need to have is a profit motive -- not necessarily profits).
  - aacook 16y ago
    Yes... the key is sending in the estimated payments. If you fall behind or (worse) wait until the end of the year, you'll be stuck with a huge tax liability.
- danssig 16y ago
  My tax guy always tells me: the US hates employees. There are more loopholes if you contract or (even better) have your own business (which could be a contracting business). Plus you don't get taxed at source so you can take that extra 30%+ you get each paycheck to pay a tax person to figure this all out for you in time to save up for the tax hit at the end of the year.

eof 16y ago

renegotiate/find a new job? With 1.5 years of 'starving freelance' experience I got my first programming job at 55k and was able to negotiate to 70k within 6 months.

tjarratt 16y ago

Really depends on where you work. There are some managers that make $47k in some parts of the US and live very comfortably. Aside from that, contracting can help get bump your salary up. Fresh out of college I was making less than $47k and then easily tripled my salary within a year of contracting (although I was working insane hours and basically used all of my allotted overtime hours). It isn't always great for mental health or work/life balance, but it can be a great shot in the arm in terms of providing needed work experience and money.

xnxn 16y ago
Thanks -- I've toyed with the idea in the past, and I think it might be time to just dive in. So if anyone has resources for a web developer in Portland looking to break into contracting, I'd love to hear from you.

wtracy 16y ago

Do keep in mind that "most" programming jobs are in areas with high costs of living: San Francisco, San Jose, and New York. That said, take a look at this: http://www.payscale.com/research/US/Location=Portland-OR/Salary http://www.payscale.com/research/US/Location=Portland-OR/Sal... The median salary for an SE in Portland is $67k. So, yeah, it's negotiating time.

xyzzyz 16y ago

They offered me more ($55k) on my internship. I really think you should earn more.