On Tue, 5 Mar 2002, AZ Pete wrote:
> Derek,
> Another person already commented on your math and all his points were
> valid. Additionally, I would like to add that I am unsure how you are
> able to only pay 10% for tax contribution. If you are billing $80,000
> per year, you would be in the 28% (maybe even 33%) Federal tax bracket.
Im sorry you misunderstand, I was counting ONLY the EMPLOYER contribution.
I assume making 60k as a consultant = 60k as employee after that calc. IE
you pay YOUR taxes on you own.
> That does not include AZ state tax (3-5%), and self employment tax of
> 15% (aka Social Secuiry).
> So at a mimimum, for a $80K yearly salary a LEAST a third of that goes
> to taxes and your left with $56K. Keep in mind these are only taxes and
> do not include all the other expenses of running a business.
Again why should the client pay YOUR taxes. I would expect them to burden
the 10% or so of social security tax normally encumbered by a standard
employee and thus tacked that on, but why would they pay your normal
personal income tax?
Again, I will state as long as the market will bear it people will gouge.
I think the market is softening and people are now whining and crying, and
all I can say is its our own fault.
I hear people here cry about a 12.00 hour computer jobs as a joke. Well
when employers were crying about paying techies 100,000 year they surely
were demanding it. I just find it funny now that tables have turned thats
all.
-Derek
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