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Reply to "200k independent contractor or 110k fed?"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Contractor. Some have great benefits. [/quote] It is an independent contractor position, which means that individual is their own business. Here are things to consider: self employment tax (7.5%), health insurance (about 10K), 401K match (varies, lets say 6%), no pay on vacation or holidays (lets say 35 days a year). So, 200K is $100/hr. 88/hr after percent benefits -172Kyr. 35 days off is 35*88*8, $24600. Subtract out health insurance, you are down to 140K. Now, no-one is marketing for you. You want to stay employed. Figure you need to spend 10% of your time on that; 17.2K. Suddenly your net is 125K For the 125, you have to deal with invoicing, book keeping. And the uncertainty that goes with being independent. I would probably stat with the gov't.[/quote] Agree with this post. I had a spreadsheet that broke down both salaries by taxes, benefits, commute (if down to two), and the amount of personal networking and marketing. I ended up as a full time employee in a non-government position, working from home 100%. The contractor route was more work, and the increased pay was absorbed by the lack of benefits/taxes. I like certainty.[/quote]
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