The Psychological Trap of Freelancing
One thing I would like to add... I created my own solo S-corp and started on the path of contracting. I have been successful enough to minimize my payroll taxes using a solo 401k (~18k max contribution and then my company can contribute 25% of my w-2 salary). Now I am at the point where I am investigating how to setup a defined benefit plan for myself to defer 75-100k in payroll taxes. Most likely a cash balance plan.<p>I think most employees at FAANG don&#x27;t realize how much they really give up paying CA taxes and a significant portion of Federal taxes.<p>Then I realize why FAANG companies don&#x27;t have defined benefit plans... The tenure of most employees would not make it worthwhile.<p>I wish we had something like the SAG-AFTRA rate fees for programming. We don&#x27;t so I guess my solo way of doing things will have to do for now.<p><a href="https:&#x2F;&#x2F;www.sagaftra.org&#x2F;contracts-industry-resources" rel="nofollow">https:&#x2F;&#x2F;www.sagaftra.org&#x2F;contracts-industry-resources</a><p>Look at those rates!