Opher Ganel
1 min readApr 2, 2021

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Nice article with good tips. However, the one about dividing "the salary you want" by 2000 oversimplifies too far in my opinion. For example, if you'd be happy with a $100,000 salary, this advice would suggest $50/hour. However, this misses many critical differences between a salary and self-employment income. These include:

- Self employment taxes are (about) twice as high as the employee payroll tax deducted from a salary.

- Employees don't typically have to spend time marketing themselves or running their own company.

- Self employed people don't get paid sick leave.

- Self employed people don't get an employer match to their retirement plan.

- Self employed people don't get employer contribution toward their health insurance (many employer, especially larger ones, pay 80% or more of the premiums for employees).

None of this is intended to imply that being self employed is a bad idea. As a successful self employed professional for over a decade, I very much believe this is the better choice for many people. You just have to take all of it into account when calculating your base rate.

I put together a (more nuanced) formula here:

https://medium.com/financial-strategy/strategically-pricing-your-freelance-services-f04a7cb0be62

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Opher Ganel
Opher Ganel

Written by Opher Ganel

Consultant | systems engineer | physicist | writer | avid reader | amateur photographer. I write about personal finance from an often contrarian point of view.

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