IC vs Employee

[FiveIronFrenzy]

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Any advice on how best to compare IC vs Employee contract offers? Especially looking for good resources to get some accurate quotes (thinking TX) to price out health insurance, 401K, etc. so I can get an accurate feel for what these would cost me if I were IC.

I know there is a lot of information on this already, and did a pretty good search, but was wondering if anyone has any good sources for getting accurate quotes quickly so that I can compare an IC offer to an Employee w/benefits offer in the same area.

 

[da8s0859q]

Know a couple people who are fond of the idea that the typical benefits in an employed position equal about a $25/hr to $50/hr difference versus a 1099 job -- just as a rule of thumb, for what it's worth to you. I'll defer to others as for resources for quotes.

I screwed around with numbers for my own employed position right now and found that to not be far off the mark depending on how you look at it.

 

[GeneralVeers]

It is about $25-$50 depending on the job. Assuming 140/hours per month the breakdown is as follows for my last employed job:

$10/hour for employer payroll tax
$2/hour for health insurance (assuming single person)
$10/hour employer 401K contribution
$6/hour CME allowance
$2/hour disability
$1/hour life insurance

= $31/hour

That amount may increase or decrease depending on what your employer offers as far as 401K match and CME allowance. I usually price in $50/hour for IC just to be generous. As IC I have to pay quarterly taxes, and keep more records which takes my time. So if an employed position pays $200/hour, I wont take anything less than $250 IC for an equivalent job.

 

[swamprat]

It is about $25-$50 depending on the job. Assuming 140/hours per month the breakdown is as follows for my last employed job:

$10/hour for employer payroll tax
$2/hour for health insurance (assuming single person)
$10/hour employer 401K contribution
$6/hour CME allowance
$2/hour disability
$1/hour life insurance

= $31/hour

That amount may increase or decrease depending on what your employer offers as far as 401K match and CME allowance. I usually price in $50/hour for IC just to be generous. As IC I have to pay quarterly taxes, and keep more records which takes my time. So if an employed position pays $200/hour, I wont take anything less than $250 IC for an equivalent job.

Only 10 for payroll? That seems low. I guess if your per diem that payroll $ should go up cause that doesnt go away until you make 100 something K right

 

[GeneralVeers]

Only 10 for payroll? That seems low. I guess if your per diem that payroll $ should go up cause that doesnt go away until you make 100 something K right

I'm only including the employer portion of payroll tax which comes to about 6% of salary up to 105K.

 

[swamprat]

I'm only including the employer portion of payroll tax which comes to about 6% of salary up to 105K.

So if you had an option between 2 jobs both paying the same per hour, one an IC and another an employee job (u have a main job where u get ur benefits) what would u choose?


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[deleted109597]

IC lets you write more off on your taxes, if you've already got benefits from somewhere else.

 

[gutonc]

So if you had an option between 2 jobs both paying the same per hour, one an IC and another an employee job (u have a main job where u get ur benefits) what would u choose?


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Are gross or same net? Jobs are more or less otherwise identical?

Personally? Salaried with bennies. Because it actually pays more.

There are legitimate reasons to choose the IC job, but they're not worth it to me.

 

[swamprat]

Are gross or same net? Jobs are more or less otherwise identical?

Personally? Salaried with bennies. Because it actually pays more.

There are legitimate reasons to choose the IC job, but they're not worth it to me.

Yeah. So I'm doing fellowship in an unrelated EM field and going to be working on the side in the ED. So all my benefits will be coming from my fellowship program. All else equal (distance, volume, staffing etc) would you choose IC or employee? I know I can write more stuff of but will I really be able to do that every quarter.

 

[GeneralVeers]

Yeah. So I'm doing fellowship in an unrelated EM field and going to be working on the side in the ED. So all my benefits will be coming from my fellowship program. All else equal (distance, volume, staffing etc) would you choose IC or employee? I know I can write more stuff of but will I really be able to do that every quarter.

Most employee jobs require a minimum number of hours, usually 120-140 which is a dealbreaker for me. IC allows me to work as much or as little as I want and control the schedule.