Every day you work for an organization, you are accruing paid time off that can be used at your leisure. For me, this currently comes out to about 45 minutes every day. Therefore, when a holiday comes, or I decide to take a vacation, I still get paid! Unfortunately, I never found a client willing to offer me this perk. Instead, as a freelancer, if I took a day off, my bank account took a hit.When you work for an organization, your company covers 50% of social security and Medicare taxes (although about 7 1/2% of your paycheck still goes to these taxes). As a freelancer, none of these taxes are covered or even automatically pulled out of your paycheck. Therefore, you are responsible for paying out close to 15% of your earnings for these services. Thus, that $50/hr quickly drops to $43 before accounting for traditional income tax.
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