Contractor vs employee
Weighs salary plus benefits against day rate less expenses and tax drag.
$
$
$
$
8.0%
Contracting pays more
$4,464
Contract net
$94,464
Employment $90,000
- Contract gross
- $109,200
- Day rate needed to match
- $497
- Employee benefits share
- 13.3%
- Break-even billable days
- 201
How this is calculated
- · Tax drag is a single simplified percentage.
- · Benefit values are estimates.
Estimates only — not financial, tax or legal advice.