Image Credit - www.amandawalkins.com
Ben Mauro has always been extremely helpful to those thinking of pursuing a freelance career. He's back again talking a bit about the pro's and cons of Freelance vs. working In-House at studios. These are some great guidelines to follow when quoting freelance work to studios. Many people don't consider all of the extra costs that come with working freelance. Many of these costs are usually taken care of by the studios when you work In-House, so we don't immediately consider them when we work from home.
Too many people aren't getting paid what they should for Freelancing. So definitely don't forget about all of this when you're quoting work for a contract!
- Jacob
Too many people aren't getting paid what they should for Freelancing. So definitely don't forget about all of this when you're quoting work for a contract!
- Jacob
Ben Mauro -
https://www.facebook.com/ben.mauro.3
http://www.benmaurodesign.com/
RATES FOR CONCEPT ARTISTS/DESIGNERS
Was planning on doing more of this over the year but as with the contracts/negotiations one, seems to pop up around New Years when i have more down time. Some of these topics are what i discuss during my workshops/talks and just some general advice as we push forward into 2014.
This is obviously the tip of the iceberg on the pro's and con's of working in both environments, we can obviously get much deeper into all of this at another time. Feel free to discuss things further in comments, would be nice to hear others experiences as well. :)
Edit: Thom Tennery brought up a good point about the different taxes for both:
"It's worth mentioning the dramatically different tax ramifications of the two scenarios. Freelancers always pay their own payroll taxes (in house artists only pay half of the payroll tax in the US). There are common situations where a freelancer's tax rate is 25% higher than an in-house artist. In addition, several US states collect a state tax over and above the federal tax that everyone pays. It's extremely bizarre to me that this is often ignored when artist's incomes/rates are being discussed. Losing 15-30% of your income in taxes is a significant line item to say the least."
Steve Wang on taxes in Canada for artists:
"As a fulltime in-house artist making $200 USD per day, you'll have to pay 27-30% income tax. It goes to somewhere around the 40% range once your income is over 6 figures.
As a freelancer, you only have to pay the self-employment tax of 14%, and that is if you make over 6 figures. This also gives you the freedom to write off expenses."
https://www.facebook.com/ben.mauro.3
http://www.benmaurodesign.com/
RATES FOR CONCEPT ARTISTS/DESIGNERS
Was planning on doing more of this over the year but as with the contracts/negotiations one, seems to pop up around New Years when i have more down time. Some of these topics are what i discuss during my workshops/talks and just some general advice as we push forward into 2014.
This is obviously the tip of the iceberg on the pro's and con's of working in both environments, we can obviously get much deeper into all of this at another time. Feel free to discuss things further in comments, would be nice to hear others experiences as well. :)
Edit: Thom Tennery brought up a good point about the different taxes for both:
"It's worth mentioning the dramatically different tax ramifications of the two scenarios. Freelancers always pay their own payroll taxes (in house artists only pay half of the payroll tax in the US). There are common situations where a freelancer's tax rate is 25% higher than an in-house artist. In addition, several US states collect a state tax over and above the federal tax that everyone pays. It's extremely bizarre to me that this is often ignored when artist's incomes/rates are being discussed. Losing 15-30% of your income in taxes is a significant line item to say the least."
Steve Wang on taxes in Canada for artists:
"As a fulltime in-house artist making $200 USD per day, you'll have to pay 27-30% income tax. It goes to somewhere around the 40% range once your income is over 6 figures.
As a freelancer, you only have to pay the self-employment tax of 14%, and that is if you make over 6 figures. This also gives you the freedom to write off expenses."
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