4 ms·

Being your own boss has huge advantages, tax and otherwise, at least in the US.

walshemj 12y ago
well on stack exchange workplace site it appears that in the USA freelance contactors (especially w2 ones) don't get a big premium id expect a minimum of 100% when compared to an equivalent fulltime as a contractor in the uk.
- logn 12y ago
  I've noticed W-2 contractors will get about 50% more, in Midwest USA at least. You're looking at $70/hr for comparable full-time roles that might pay $100K/year.
deet 12y ago
Is the tax advantage really that clear cut? You can deduct business expenses but there's self-employment tax and in some places business taxes (like the Unincorporated Business Tax in NYC) that can really add up.
- cylinder 12y ago
  In NYC the taxes are much higher on the self-employed. I asked my CPA why this is and he said "well you get more deductions." Hmm, not really, but okay, I guess NYC is expecting me to take some frivolous/borderline deductions?
  - granos 12y ago
    They don't have to be frivolous. Do you have an office in your primary residence? Take the cost of that residence (rent or mortgage) * (area of office / area of residence) and deduct that. Bought new paint for that room? Deduct it. Did you get a new computer that you use for work? Deduct it. But talk to your tax professional first because I'm not one and this is not advice :)
    - mgkimsal 12y ago
      but those are just general - nothing you mentioned is specific to nyc.
_delirium 12y ago
There are some significant disadvantages as well, though. One is that there are fairly large cost/access disadvantages for healthcare compared to being part of a corporate group plan, although Obamacare has improved the access part.
- ChuckMcM 12y ago
  This is something I think tech professionals should be able to ameliorate. You can do 'group health' (like AARP does) with a group membership organization. Is there not anything like that available from at least the IEEE or the ACM?
  - atsaloli 12y ago
    Indeed: http://www.acm.org/membership/insurance-programs http://www.acm.org/membership/insurance-programs
    - _delirium 12y ago
      That's more of a marketing partnership, unfortunately not a proper group plan. I looked at it a few years ago, and it was missing the one key part of a proper group plan: mandatory coverage. If you work for Google, you are automatically covered by Google's group-plan health insurance; the insurer does not approve or reject specific employees. Whereas with ACM's partnership, being an ACM member is no guarantee of coverage. You have to submit an application, and the insurer can turn you down (or at least could, a few years ago).
- cylinder 12y ago
  Obamacare hasn't improved the access part unless you're subsidized. Maybe the plans are a little better, but you're still paying exorbitant premiums, especially in corrupted states like New York where you've got to subsidize the high incomes of medical malpractice lawyers. Important to note that employees of large corps are still paying big premiums, they just think they're not because the employer is paying half or more. But if those costs weren't there they could be passed to the employee as wages. This is one of the strongest explanations for the stagnation and decline of wages in the US over the last couple decades. If we made everyone buy their own insurance, there'd be riots in the streets.

well on stack exchange workplace site it appears that in the USA freelance contactors (especially w2 ones) don't get a big premium id expect a minimum of 100% when compared to an equivalent fulltime as a contractor in the uk.

logn 12y ago
I've noticed W-2 contractors will get about 50% more, in Midwest USA at least. You're looking at $70/hr for comparable full-time roles that might pay $100K/year.

deet 12y ago

Is the tax advantage really that clear cut? You can deduct business expenses but there's self-employment tax and in some places business taxes (like the Unincorporated Business Tax in NYC) that can really add up.

cylinder 12y ago
In NYC the taxes are much higher on the self-employed. I asked my CPA why this is and he said "well you get more deductions." Hmm, not really, but okay, I guess NYC is expecting me to take some frivolous/borderline deductions?
- granos 12y ago
  They don't have to be frivolous. Do you have an office in your primary residence? Take the cost of that residence (rent or mortgage) * (area of office / area of residence) and deduct that. Bought new paint for that room? Deduct it. Did you get a new computer that you use for work? Deduct it. But talk to your tax professional first because I'm not one and this is not advice :)
  - mgkimsal 12y ago
    but those are just general - nothing you mentioned is specific to nyc.

_delirium 12y ago

There are some significant disadvantages as well, though. One is that there are fairly large cost/access disadvantages for healthcare compared to being part of a corporate group plan, although Obamacare has improved the access part.

ChuckMcM 12y ago
This is something I think tech professionals should be able to ameliorate. You can do 'group health' (like AARP does) with a group membership organization. Is there not anything like that available from at least the IEEE or the ACM?
- atsaloli 12y ago
  Indeed: http://www.acm.org/membership/insurance-programs http://www.acm.org/membership/insurance-programs
  - _delirium 12y ago
    That's more of a marketing partnership, unfortunately not a proper group plan. I looked at it a few years ago, and it was missing the one key part of a proper group plan: mandatory coverage. If you work for Google, you are automatically covered by Google's group-plan health insurance; the insurer does not approve or reject specific employees. Whereas with ACM's partnership, being an ACM member is no guarantee of coverage. You have to submit an application, and the insurer can turn you down (or at least could, a few years ago).
cylinder 12y ago
Obamacare hasn't improved the access part unless you're subsidized. Maybe the plans are a little better, but you're still paying exorbitant premiums, especially in corrupted states like New York where you've got to subsidize the high incomes of medical malpractice lawyers. Important to note that employees of large corps are still paying big premiums, they just think they're not because the employer is paying half or more. But if those costs weren't there they could be passed to the employee as wages. This is one of the strongest explanations for the stagnation and decline of wages in the US over the last couple decades. If we made everyone buy their own insurance, there'd be riots in the streets.