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One thing this forgets to mention is that you can't compare freelance and employee direct like that. First you have to consider taxes, as a contractor they don
by Guvante 14y ago
One thing this forgets to mention is that you can't compare freelance and employee direct like that.
First you have to consider taxes, as a contractor they don't cover half your social security, so about 7%. Next you have to consider healthcare, varies but often 4% or more. Stock options and 401k can add 10% if you are at the right place. 3 weeks vacation is another 6%. So benefits are about 25% of your paycheck (this sounds low to me...)
Stability is a huge deal on both ends, knowing I don't have to pay you forever lets me pay you more and knowing you have a job to come back to means you will accept less. Assuming 10% each way you get to a 50% swing ignoring skills completely.
Given that he quotes developers getting 100% more as a huge deal, and half of that is just from freelancing, it isn't quite as a big deal as he makes it IMO.
- seivan 14y agoEmployment stability is actually a myth, especially these days.
- Evbn 14y ago4%? Wow. My employee health insurance is $10k for 1 insured, $20k for family, per year. I would love that to be close to 4%. Also, employers often pay office rent for employees. And freelancers spend unpaid time doing marketing/sales to get gigs.
- Guvante 14y agoSimilar for me, but wasn't sure how common it was.