People in the know on independent contracting

[SoonerInKCMO]

Hey,

Suppose you were going to work as a contractor as a W-2 employee of a third party. This third party will handle all the tax stuff but you have to buy your own benefits and all that stuff. How would you determine your hourly rate? Add a fixed amount to your salary's equivalent hourly rate? Add a percentage? How much of a fixed amount or percentage? :confused:

[jkm, the stolen pifwafwi]

passthrough isn't normally a good idea. ping me and we can go through it...

[StoopTroup]

I'd stick to stealing panties.

That sounds more fun.

[Taxman71]

If you are a W-2 employee, then your hourly rate should be market driven. As a W-2 employee, the income tax withholding and FICA should be handled by the employer.

[Hamhock]

Hey,

Suppose you were going to work as a contractor as a W-2 employee of a third party. This third party will handle all the tax stuff but you have to buy your own benefits and all that stuff. How would you determine your hourly rate? Add a fixed amount to your salary's equivalent hourly rate? Add a percentage? How much of a fixed amount or percentage? :confused:

i would figure the cost of the benys (vacation, retirement, etc.) and add it to the hourly rate. keep in mind that many of the benys if paid by the employer are tax free, while the increase in hourly rate is taxable. so, it might cost your 1.30 to get 1.00 in benys usually provided by an employer.