In current role I am a salaried employee with full benefits in IT.
As a 1099 I will be doing same role but either remote or commuting.
The reason i ask about the hourly rate is while I can easily determine the hourly rate as a salaried employee, that also includes tax deductions, 401k contributions, health insurance deductions etc. I know I cannot work at the same hourly rate as a 1099 considering I have to pay taxes myself.
To be on the safe side I factored 30% of whatever I earn as a 1099 will be for taxes. I am just not sure if this makes sense. I understand and realize I will prepare a Sch C and will be able to include expense deductions, I just want to make sure my hourly rate covers taxes and allows a safety net to still walk away with what I was netting as a W2.
My guess is I need to be in the range of $120-$130 an hour to be comfortable. i have been offered rates at $80/hr which i feel is too low considering 30% for taxes.
