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If you're planning to be an independent freelancer, find yourself three
professionals who charge reasonable rates: an accountant, a lawyer and an
insurance agent. Have your lawyer review the work agreement with your
soon-to-be former employer. Talk to your accountant about what you should
do regarding your tax situation.
Lawyer and accountant go almost without saying, a good insurance agent can
do wonders as well. Over the past 15 years, the number companies that pay
any part of insurance benefits has dropped significantly. As a result, when
my last w2 gig ended, my Cobra insurance payments were EXACTLY THE SAME as
when I was employed. The big problem I found was in going from group
coverage to individual coverage, not COBRA. Of course YMMV. Find an
independent agent who specializes in small business--they understand the
challenges, and will work with you to find rates and coverages you can
actually live with. Consider incorporating as an LLC to see if you can get
a group of one health insurance policy, if individual coverage is too high
(after being diagnosed with a condition that now appears in all my health
records, I cannot get individual coverage. Group of one was expensive, but
at least it was coverage. ) And remember, if you're in the US a lot of your
insurance requirements will change over the next 24 months, so find somebody
willing to stay on top of it.
Depending on your level of experience, and the scope of work you being asked
to do, you may be able to get a higher rate. I have done contract work in
the past for DC area clients, and have been told that my rate, which is very
high for Charlotte, is seriously below market for DC. Thus I learned the
lesson to base your rate on experience, scope, and market. You've gotten a
lot of other good suggestions (especially the quick pay discount!) Welcome
to independent contracting and good luck!
Connie
-----Original Message-----
From: techwr-l-bounces+connie=therightwordz -dot- com -at- lists -dot- techwr-l -dot- com
[mailto:techwr-l-bounces+connie=therightwordz -dot- com -at- lists -dot- techwr-l -dot- com] On
Behalf Of Pro TechWriter
Sent: Monday, September 12, 2011 3:45 PM
To: Mark Filiatreau
Cc: techwr-l -at- lists -dot- techwr-l -dot- com
Subject: Re: What's a good freelance rate for technical writers?
I would charge around $68 an hour, with a discount off the total invoice if
paid in 15 days. I used to give around a 2% discount for a quick pay.
You will want to stipulate up front that your invoices must be paid in 30
days, but 15 days would be best. If they don't pay in 30 days, stop work.
Many government contractors will assume that they can pay you in 90 days,
which just won't work for a small business.
Dont' forget that insurance will be much more expensive than with an
employer. Even if you get a discounted rate through STC or another
organization.
Good luck,
PT
On Mon, Sep 12, 2011 at 1:27 PM, Mark Filiatreau
<mfiliatreau -at- psi-it -dot- com>wrote:
> It will be 1099.
> Thanks, Margaret, that's the kind of info I'm looking for.
>
> Mark D. Filiatreau
>
> -----Original Message-----
> From: Margaret Cekis [mailto:Margaret -dot- Cekis -at- comcast -dot- net]
> Sent: Monday, September 12, 2011 2:22 PM
> To: Mark Filiatreau; techwr-l -at- lists -dot- techwr-l -dot- com
> Subject: RE: What's a good freelance rate for technical writers?
>
> Mark Filiatreau asked, "What's a good freelance rate for technical
> writers?
> ...in a place like the hyper-expensive Washington, DC, area?... my
> company has already asked me to be available as a contractor on an
> as-needed basis.
> I was asked, "What's your rate?"...My "gross rate" on my paycheck is
> about $40/hour,
> ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
> Mark:
> Will it be on a W-2 or a 1099 contract? If it is a W-2, the company
> will pay half your FICA and Medicare taxes, and you will be covered by
> unemployment insurance. The company can/will withhold funds toward
> your Federal, State and municipal income tax, if applicable. If it is
> a 1099, you will have to pay all of the FICA and Medicare taxes, you
> will not be covered by unemployment, and you will have to file
> quarterly estimated US income taxes to the IRS. This makes a big
> difference in the rate you should charge.
> For a
> W-2, I'd up my hourly salary by 35-50%, or ask for $55-60. If it is a
> 1099, I'd double it, or ask for at least $75-80.
> Margaret Cekis, Johns Creek GA
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