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Salaried employee vs independent contractor
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Compensation analysis
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Salaried EmployeeSelf-Employed or Independent Contractor
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enter actual hours worked per week22.540Enter Full Time Hoursenter hours worked per week22.5
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enter days worked per week
35# FT Daysenter days worked per week3
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hours per average day7.58hours per average day7.5
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*enter hourly salary $ 75.00 enter hourly salary $ 110.00
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hours paid annually11702080anticipated hours worked annually1170
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Incentive/Bonus $ - Incentive/Bonus $ -
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Annual Salary $ 87,750.00 Annual Salary $ 128,700.00
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FICA Max $ 147,000.00
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Cost of Full Time BenefitsHoursPT Prorated
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enter days vacation time1512067.5 $ 5,062.50 cost of time off subtracted $ 16,200.00 $ 1,650.00
actual cost
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enter days continuing ed time54022.5 $ 1,687.50 days off28.82
actual days taken off
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enter days personal time54022.5 $ 1,687.50
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enter paid sick time86436 $ 2,700.00
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enter days holiday time129654 $ 4,050.00
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enter other days off with pay32413.5 $ 1,012.50
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enter continuing ed costs paid by employer $ 2,500.00 $ 1,406.25 cost of continuing ed and prof fees $ 3,234.38 $ 1,600.00
list cost of professional expenses
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enter professional organization dues paid by employer $ 750.00 $ 421.88 $ 750.00
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malpractice premium paid by employer
 $ 2,500.00 $ 1,406.25 $ 1,600.00
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enter other fees paid by employer $ - $ - $ 450.00
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enter annual employer contribution toward health benefits $ - $ 6,000.00 cost of other benefits $ 7,068.75 $ -
list costs of other expenses
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enter annual cost of employer supplied life insurance $ 400.00 $ 225.00 $ -
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enter annual cost of employer supplied disability benefits $ 1,500.00 $ 843.75 $ -
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enter annual employer contribution to pension plan $ - $ -
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enter annual cost of other employer supplied fringe benefits $ - $ - $ -
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Total cost of benefits supplied by employer $ 26,503.13 Subtotal $ 102,196.88 $ 122,650.00
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Cost of fringes excluding excused time off $ 10,303.13
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**employer FICA contribution
 $ 6,712.88 Half of FICA contribution $ 8,606.25 $ 8,606.25
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Effective annual salary $ 104,766.00 Effective net annual salary $ 93,590.63 $ 114,043.75
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Effective hourly salary $ 129.34 Effective hourly rate $ 98.10 $ 98.74
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Hours actually worked annually810Hours actually worked annually9541,155
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Information Update for 2008
Additional Medicare tax! 0.9% (on earnings over $200,000 for single filers; $250,000 for joint filers)
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Income subject to Social Security Tax $ 147,000
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Percentage FICA*15.30%
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Employer Contribution7.65%
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Employee Contribution7.65%
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*Although most professionals are "exempt" employees, it is useful to use estimated hourly salary based on work schedules.
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**Self-employed individuals or independent contractors pay the entire portion of their FICA tax.
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Employees have half of their FICA taxes, currently 7.65%, paid by their employer
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