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Ask HN: How much more should I ask for as a full-time contractor?

by expathacker on 11/9/18, 8:26 AM with 1 comments

I'm about to receive an offer at a mature US start-up. HR is using my remoteness as an excuse to make me a contractor instead of an FTE. We initially discussed a $150k salary as an employee, so I'm not sure what I should set my minimum salary since I won't have any benefits.

  • by cimmanom on 11/9/18, 10:11 AM

    In the US, contractors also pay extra taxes (both sides of the payroll tax, ~15% of salary, instead of just one side, ~7.5% of salary).

    Smart freelancers also charge more than they’d make per hour as a salaried worker because contract work is less stable than salaried work. When you do have work, you need to put a little extra in the bank to make up for the weeks when you don’t have work.

    Add the out of pocket cost of benefits you won’t be paid for; the vacation time you won’t be paid for; any additional costs you have to shoulder (office at a coworking space? Business class internet? New computer?).

    Multiply by your freelance security factor. Update that total to account for any extra taxes. Don’t accept less than that.