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Professional Business Services

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Profit Through Organization

Profit Through Organization Profit Through Organization

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 $50/hr *


       Full-time Employee:             Independent Contractor (Virtual Assistant):

Base Salary:             $50/hr                           $50/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: $122,107 vs. Independent Contractor: $104,000


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: www.salary.com and www.greythornsalaryindex.com websi


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