What percentage over and above a salary should I be paid as an independent contractor vs a paid employee?

Question

I may be offered a job as an independent versus an employee with all the benefits. So if regular salary was 60k, what percentage should I add for an independent? Thanks. ALL comments appreciated

It is the construction industry and I would be a Project Manager over seeing MILLIONS of dollars in projects for a tourist facility.

Answer 1

It really depends on your industry and job. I think that your benefits would cost at least 15-20% of your original base salary. But if you want to fluff it up even more then you may be able to.

Be aware, though I was hired to replace a contractor who was charging about 3 times as much as I am paid.

Answer 2

It depends some on the benefits packagge offered to a regular employee. As a contractor, this would have to be made up by yourself.
An independent would ideally be paid 50% more than an employee. The reality tends to be somewhat less, otherwise there is no cost saving appeal to the employer. The only difference would be a company looking to maintain a small business status, and trying to limit the number of employees.

If they were to offer 30-35% more, I would consider that as a minimum, since you have to cover all the taxes that usually get hidden in a payroll

Answer 3

Figuring that social security and workmans comp are about 10%, that is the minimum. Also considering medical insurance, vacation, and paid holidays it could be as much as 25%.
Be aware that if you are doing the exact same job and are still directly under the employer's control the IRS will not let you do it.

I just noticed that you said construction. That could cause workman's comp to be as much as 20%.

Answer 4

This is completely irrelevant to your question,but you left a really nice answer to one of mine and there's no "contact Annie" button for me to press. You're an absolute hunny-bunny and here comes an electronic kiss for ya:

"S*M*A*C*K"