The Freelance Tax Burden
When you transition from a W-2 employee to a 1099 freelancer, you suddenly become responsible for both the employee and employer portions of the self-employment tax.
Pricing Your Services
Freelancers must use a reverse salary calculator to determine their required hourly rate. To take home the equivalent of a $70k salary, a freelancer often needs to bill closer to $100k to cover taxes and lack of benefits.