Cost Comparison

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

Bonuses:                $512                          

Social Security:        $2,867                         

401K:                  $2,324                         

Disability:               $600                         

Healthcare:            $5,328                         

Pension:               $1,574                         

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.

Sources: and websites