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He should be using pre-tax numbers for everything - not only is he not deducting any expenses, he's comparing the final after-tax number with the before-tax min
by zb 12y ago
He should be using pre-tax numbers for everything - not only is he not deducting any expenses, he's comparing the final after-tax number with the before-tax minimum wage.
Still, assuming his research is accurate at best it comes out at like ~$12 per hour before tax, unless you play russian roulette on the insurance. This of course assumes that it's your full-time job, otherwise the car payments will further reduce the hourly rate.
- bane 12y agoNo, I'm assuming he should be bringing home about what the after-tax minimum wage earner brings home for 50 hour work weeks at minimum wage. But you are right, I should deduct expenses before taxes. I don't think the end-result is terribly different though. Maybe $1-2/hr
- Retric 12y agoSorry, your wrong. Self employment tax is higher than just social security tax so you need to look at after tax earrings to compare a 1099 job to a w-2 job. Also, more expences can be deducted as an uber driver than a wage slave ex: a percentage of your cell phone bill and car depreciation.