Considering a contract position, but aren't sure what your hourly rate should be? Determining the right rate is essential lest you lose thousands due to significantly higher taxes, benefits costs and other expenses.
In general, plan on charging between 25%-30% more than your employee going rate as a contractor, but consider the many factors included in these online calculators and articles below to ensure that you receive the equivalent compensation of a regular employee.
- Contract pay calculator (Rakkar)
- Converting full time pay to hourly contract rate (Hueniverse)
- Hourly wage calculator (Career Profiles)
- Doing the math on being a W2 employee vs. an independent contractor (LinkedIn)
- How much should contractors charge? (Monster)
- Employee vs. contractor: A tax distinction (Bankrate)
Once you have estimated your going rate as a contractor, run it by an accountant or financial planner to ensure that you've thought of every financial and tax consequence.
WARNING! Don't be fooled by seemingly large contractor paychecks! About half of your paycheck should be saved to cover higher taxes.
Being a contract employee can be lucrative, but do your homework, negotiate well and save ruthlessly! -- Kathy
RELATED ARTICLES: Should you be a contract employee?
- Being a consultant, freelancer or contractor (Nolo)
- Should I be a contract worker or a permanent employee? (Ashley Ellis)
--------------------------------------------------------------------------------
Look to WiserU
WiserU provides LinkedIn training and services and career training and services for individuals and organizations that can transform your future or grow your business. Visit WiserU.com to learn more.
Look to WiserU
WiserU provides LinkedIn training and services and career training and services for individuals and organizations that can transform your future or grow your business. Visit WiserU.com to learn more.
- Businesses arrange for WiserU to maximize their use of LinkedIn for sales, marketing, and fundraising through training and services. Learn more
- The unemployed and miserably employed hire WiserU for career training, coaching, interview preparation, and LinkedIn profile and resume creation services. Learn more at wiseru.com/services/
- Subscribe to WiserUTips.com for weekly LinkedIn and career tips!
No comments :
Post a Comment
Comments - You are welcome to comment, but please do not include a link address. Posts with web links will not be published.