Went from 10+ years of salaried positions to a contract role for 6 months and my tax bill was a complete shock

I made $18,000 more on paper as a contractor for a marketing firm in Phoenix, but after paying self-employment tax and getting zero benefits, I actually ended up earning about $3,200 less than my old salary - has anyone else run the real numbers on contract work and found it wasn't worth the flexibility?

2 comments

2 Comments

wren30127d ago

Yeah, "zero benefits" really hits home... I did contract work once and the tax bill ate up all the extra money too.

reese55127d ago

Was in the same boat @wren301, set aside what I thought was enough and still came up short.