Re:Ask HN: How much more should I ask for as a full-time con...
by cimmanom on Friday November 09, 2018 @05:11AM
(#18413476)
In the US, contractors also pay extra taxes (both sides of the payroll tax, ~15% of salary, instead of just one side, ~7.5% of salary).
Smart freelancers also charge more than they’d make per hour as a salaried worker because contract work is less stable than salaried work. When you do have work, you need to put a little extra in the bank to make up for the weeks when you don’t have work.
Add the out of pocket cost of benefits you won’t be paid for; the vacation time you won’t be paid for; any additional costs you have to shoulder (office at a coworking space? Business class internet? New computer?).
Multiply by your freelance security factor. Update that total to account for any extra taxes. Don’t accept less than that.
Smart freelancers also charge more than they’d make per hour as a salaried worker because contract work is less stable than salaried work. When you do have work, you need to put a little extra in the bank to make up for the weeks when you don’t have work.
Add the out of pocket cost of benefits you won’t be paid for; the vacation time you won’t be paid for; any additional costs you have to shoulder (office at a coworking space? Business class internet? New computer?).
Multiply by your freelance security factor. Update that total to account for any extra taxes. Don’t accept less than that.