Contract pay calculator
Being a contractor has many legal and financial benefits over being an employee, as well as a sense of independence. However, contractors incur costs employees do not, which they have a right to charge employers for. Conversely, employees incur costs contractors do not, and contractors have a right to ask for the savings. Since it is difficult to remember all these costs, this calculator should help you negotiate with your employer a fair contracting rate.
Note that equivalent compensation means you get the same pay as an employee. You may be justified in asking for more. For example, if the work is short-term, specialized, or of a critical nature.
The calculator assumes that the employer pays:
Anything the employer no longer has to pay, or you now have to pay is added to your equivalent salary. Anything you save is subtracted.
- 6.2% of the first $97,500 for social security
- 1.45% for medicare
- 6.2% of the first $7000 for unemployment tax