Additional Posts in WFH Freelancers
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"post_content": "Thinking of taking the leap and going freelance.. how many hrs a week should I be expecting to spend on admin? (Hunting, invoicing, tax etc)",
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Depends on your pipeline and if you plan on being mostly an agency W2 freelancer or if you’re more interested in billing yourself as a consultant direct to clients.
Agency/W2, the admin stuff is basically the same as your normal agency work: time sheets/expenses.
If you go the consultant/1099 route you should do two things: 1. Find an accountant before you leave your job and have a consult with them about documents you’ll need, what you can and can’t expense, and a plan for paying your estimated quarterly taxes and 2. Ideally you should have some kind of pipeline to clients. Start reaching out and see if you can moonlight a little while you’re still FTE and then leave once you get your sea legs under you.
Hunting for work will probably take up the greatest portion your time, but that hunt looks very different depending on who your target is.
And, as we always say, make sure you’ve got a significant financial cushion before striking out. The world can change very quickly.
Good luck!
Nope, @Designer1, most agencies actually prefer you be on a W2, in my experience. I’ve only had one that 1099’d me
It wouldn't matter how they pay you, a day rate is a day rate. They pay you the same amount where they pay you via W2 or 1099. The difference is that under W2 they withhold taxes for you (just like any other job). With a 1099 you get the entire lump sum but you're then responsible for paying your own taxes.
@SC1 that’s not correct. When you’re W2 the employer pays part of the payroll tax and you don’t. In a 1099 situation, you have to pay it. So, a 1000/day rate on a W2 will get you more money than a 1000/day on a 1099 will (all other things being equal)
100. Until you get a gig.
Freelancers at agencies can get W2? I thought it was usually 1099s until they become a full-time
So when freelance people on this app discuss rates that are like 500, 600, 700 a day, are they talking about a W2 wage?
@Designer1, you’d have to ask everyone individually, but I always assume they’re W2 rates, unless otherwise noted
CD1: OK theres that payroll tax but when you factor in the tax savings through your S-Corp you can pay significantly less taxes when you 1099. With the right corporate structure 1099 is almost always better than W2!
Eh, I actually prefer being on a W2. Less complicated and I have so few expenses it makes my life much easier around tax time.