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0 pointsfsk12y ago0 comments

>$50k employee == $100k subcontractor

That's false. You can figure out out directly.

Paying your own social security tax: +7.5% (say $7500 out of $100k salary) Health Insurance: $700-$1000 per month (say $12k annually) 2 weeks paid vacation + paid holidays: +7% (another $7000 out of $100k salary)

So, $100k contractor is equivalent to ~$80k as a full-time employee with benefits.

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moron4hire12y ago

I know, that's why I said I can't figure out why places would be willing to pay me the equivalent rate of $100k as a subcontractor, but only $50k as an employee. It's very obviously better for me as a subcontractor.

fskOP12y ago

At many large corporations, the contractor budget is a different line item than the employee budget. So, it's easier to allocate money temporarily for a contractor, than for an employee where it's considered a recurring expense.

Another issue is that it's embarrassing to pay a low-ranking programmer employee more than a manager in a non-technical division. That messes up the corporate hierarchy.

mmcconnell161812y ago

With the exception that contractors typically have to spend some amount of time lining up work and interviewing. This eats into your 50 weeks of actual work outside vacations.

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