Jones-bones-boots t1_jeazx65 wrote on March 30, 2023 at 6:26 PM

I think the employment tax as an independent contractor is 15.3% or something like that. As a W2 employee you pay 1/2 that or around 7.65%

So you would multiply what you could make as a W2 employee by 1. 0735. In your case $1225 x 1.0735 = 1315 a week. So it seems to me you’d be making less overall.

Are you getting any benefits that could make up for that difference?

Now…don’t take my word on any of this. This is just from my very limited understanding. I’m hoping someone will chime in to say if I’m on point or not.

shaballabadingdong t1_jeckzkw wrote on March 31, 2023 at 12:51 AM

Thats what I was thinking. and the benefits are not worth much.

Jones-bones-boots t1_jecn3vr wrote on March 31, 2023 at 1:07 AM

So you were providing the service as a subcontractor while they got 40%. What are they bringing to the table for that 40% and now closer to 50%?

Thing is whatever you are doing is worth $100 an hour. Would it benefit you to pay someone else perhaps 15% to get the clients? I have no idea what it is that you do but it’s obvious that if you could get the clients from someone else at less than 40% a job that’s what you should do. I’m sure there are plenty of opportunities to do that but your just not business minded which is ok. You weren’t trained that way but think bigger for yourself. You’re the one with the needed skill here.

shaballabadingdong t1_jeek4fv wrote on March 31, 2023 at 1:19 PM

They have the referral base, marketing staff, office space, training, necessary technology subscriptions, and administrative staff to make the operation work. I pay them 40% and only have to focus on providing the service and a small amount of paperwork. Im not business minded unfortunately, and I really love where I work.

Jones-bones-boots t1_jeeqlmq wrote on March 31, 2023 at 2:07 PM

Well, if you are a valued employee it wouldn’t hurt to ask for a raise. Perhaps you could go in after speaking with an accountant armed with how their changes effect you financially and tell them you’d love to work something out because of how much you do love love working for them. Understand that losing and replacing an employer cost a ton of money so if you went in there valuing them they’d be motivated to compromise.