$60 or even $90/hour isn’t that great if its all 1099 income. It isn’t bad either, but the extra payroll taxes and the need to buy an individual plan (if your partner doesn’t get you into a group plan) make it pretty normal.
Not sure you understand. 1099 income means they aren’t an employee. That’s not the arrangement for people making $15-20. Those folks are regular employees so they receive that income after benefits, payroll taxes, etc.
As a 1099 employee you need to be clearing at least double the equivalent employee hourly wage because there is so much overhead. Remember, a contractor doesn’t get a single day of paid vacation.
No, I understand perfectly fine and I’ve been in both situations. I’m just saying, it sucks to be a contractor with overhead and make a decent amount without accounting for the additional expense, but it REALLY sucks to be at the bottom of the income totem pole and make peanuts (in an expensive American city).
benefits only run about 30%. So a contractor wage should be about 130% of a salaried employees wage.
This does not count when a salaried employee works more than 40 hours.
My plumber charges 150/hour.
Contractors around here bill by the job. I had bids for $5000 for a 1 day job for 2 people when incorporated into a GC bid. The GC was getting 25% on top of the 5000.
I’m sure I’ve missed a few things, but 30% doesn’t begin to cover the costs that are normally borne by a larger company and factor into the “house” premium.
You have to factor in not only benefits, but also:
* federal-level taxes (there’s no employer to pay the other half, so the contractor bears the whole portion)
* tools (you buy your own tools, stock your own spares, do your own maintenance on your dime — non-billable)
* learning and mandated certifications (same as above — non-billable)
* liability insurance (non-billable)
* vehicle maintenance, taxes, tolls, and fees (non-billable)
* transit time to and from not only contracted job sites, but also estimates that may ultimately result in no revenue (non-billable)
* marketing/lead generation (Angie’s List and HomeAdvisor are free to you, not to contractors — non-billable)
* material storage (you have the keep the customer’s plywood dry if the weather changes, or if the customer has a family emergency and needs to reschedule)
In this specific case, hospitals do tend to offer good health care plans.
Further I don't believe it is possible for a hospital with all its specialized equipment to 1099 its nurses (doesn't pass the IRS '20 questions' test on contracting).
Look up agency nurses [0]. When they're paid hourly being begged for work (as OP mentioned), it's usually for a nurse who has specialized skills that can hop between hospitals/ER/offices. Essentially, they're contractors of the agency, and the hospital pays the agency. Can't recall if they're W2 or 1099 though
