Quote:
Originally posted by Afrodeziak
employee rate (taxed)
vs
rate + 13% un-taxed.
The amount of tax you'll have to take off at the end of the year for being a contractor will exceed 13%. So you'll be in the hole?
Sure you can write-off a lot more, so it might work itself out, but 13% does seem awfully low.
In the IT industry, I've seen a huge gap in salaried pay vs, hourly rate. They make up the difference, as usually there is no health/financial benefits. They have to make up for the difference in the rate for contractors.
I think your age/financial commitments/dependants has a lot to play in it as well. Do you need to have benefits for family, etc? Or are you on your own. Young, on your own? Probably far less of a risk that you'll need to pay $1000 a tooth for crowns, yada yada..
B
yes i do have wife and kids but with no serious health concerns. the benifits new company is offering me are not that great. I dont know if I can get any medical insurance when working as a contractor. I believe there are options available to contractors but may be at much higher rate than what I can get as an employee.