Full-Time Employee vs. Independent Contractor (based on 2,080 hours) annually.
Actual Cost for Full-Time Employee Percentage vs. Independent Contractor
Base Salary $30/hr *
Full-time Employee: Independent Contractor:
Base Salary: $30/hr $30/hr
Social Security: $2,867
Time off: $4,902
Total Employer Cost: $80,507 vs. Independent Contractor: $62,400
Cost Savings of: $18,107 Annually
Note: Additional savings realized by small business owners are: no overtime pay; no office equipment; no office space; no UI Insurance or administration costs.
*Hours determined by the business owner's needs.