Pros & Cons of Salaried vs. Hourly billing

M

m78768

Registered Users (C)
Hello,
My 485 got approved last month and I should I get my card sometime next month. I am an employee of a consulting company for 5 years with all benefits where I need to travel to my client places (Mon to Thur). So travel is something I cant avoid.

I am planning to switch to hourly billing and wondering what are the things I need to take care of. Medical is one of the biggest thing. 401K and vacation that I need to put some dollars for calculations.

What do you guys think about it and anyone who has done this could provide some tips?

Thanks.
 
Yes, I mean by becoming an independent contractor. I was looking for some kind of calculations to see if I get this much $$ hourly, it will equals to the amount which I am getting right now as an employee..
 
JoeF said:
Then there is medical insurance, which can be quite a lot more, if your employer has a group policy, because you would no longer qualify for the generally cheaper group policies.
Click to expand...

If you and your family are in good health, you may find a high deductible HSA policy to be a good idea.

As an example, a standard plan with United would cost me $840/month for my family, or just over $10,000 per year. I took a high-deductible policy from BlueCross that has a $5100 deductible, that costs me $5300 per year.

The kicker is that the $5100 deductible amount can be placed, tax-free into an HSA. So my worst possible cost is $10,400 per year (about the same) but half of that would be tax free. If I don't spend the deductible, it gets saved in a tax-free account year after year to use later or for retirement.

The best part is that my health insurance is no longer tied to an employer.
 
TheRealCanadian said:
If you and your family are in good health, you may find a high deductible HSA policy to be a good idea.

As an example, a standard plan with United would cost me $840/month for my family, or just over $10,000 per year. I took a high-deductible policy from BlueCross that has a $5100 deductible, that costs me $5300 per year.

The kicker is that the $5100 deductible amount can be placed, tax-free into an HSA. So my worst possible cost is $10,400 per year (about the same) but half of that would be tax free. If I don't spend the deductible, it gets saved in a tax-free account year after year to use later or for retirement.

The best part is that my health insurance is no longer tied to an employer.
Click to expand...

HSA sounds great. Thanks for the details, it makes lot more sense to go with HSA with high dedectable.

It would be great if one of the person in the family work as a full time employee with all the benefits and the other person goes for independent contracting. :cool:
 
Deepesh7373 said:
Out of curiosity, what is HSA?
Click to expand...

Health Savings Account. It is a bank account, to which all deposits are deducted from your gross income. Withdrawals are tax-free when used for medical expenses.
 
You must log in or register to reply here.
Top