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As many of you know, I quit my job early last year to pursue blogging and writing full-time. And, for the most part, it’s been awesome. After all, I am no longer a slave to the daily grind. I don’t have to roll out of bed and put on full makeup and a monkey suit to make a living, and I hardly ever have to rush around. I’m also able to get household chores done during the day, which has been a godsend for our family. Another bonus: Since I quit working at around 4:00 p.m., I’m usually able to pull together a cheap and healthy homemade meal. This not only saves us a ton of cash, but is much healthier for us as well.
Still, self-employment isn’t perfect. In fact, there are plenty of things that I don’t like about working for myself. Here are a few:
We just did our taxes on Wednesday, and -HOLY SHIT- I’ve been robbed. This is mostly due to the dreaded self-employment tax I am forced to pay. Here is how the IRS explains it:
Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners.
Basically, since self-employed people are considered the “employer” and the “employee,” they have to pay both halves of the Social Security and Medicare taxes that are usually split evenly between an employer an employee. For self-employment income earned in 2013, that rate is 15.3%. Yikes.
When I have some sort of technology problem that is over my head, I am literally screwed. Any computer malfunction usually leads to tears and anger, and it’s really frustrating since I basically have no support. Heaven forbid I lose important data, or suffer from a complete breakdown of our server one day. That has happened before and I was fortunately able to recover my data. However, it was a huge pain. My old job wasn’t always pleasant, but at least I had technical support and help when I needed it.
No “Work Friends”
Even though I’m glad I left my old job, I really do miss my “work friends.” We used to talk a lot and spend time together, and I miss having people to chat with on a daily basis. I also miss working with Greg, and that has probably been the most difficult adjustment. We worked together for six years! Regardless, I am so happy for all of my “virtual friends,” including peeps I email and Facebook with and all of the awesome people that comment on my blog. Without you, I would be so bored!
No Health Insurance
Everyone thought that Obamacare was going to do awesome things for the self-employed. And it might, but not for high earners. Not only do the self-employed pay the highest tax rate in the country (25.3 to 43.3 percent for 2013), but we’re now stuck paying higher premiums for health insurance due to changes caused by the Affordable Care Act. For our family, our premiums will almost double from $394 per month to $737 per month for the cheapest plan available. And, in addition to the $737 we’ll pay at minimum, we’ll have a $10,000 deductible to meet before the insurance pays a dime as well as a $12,700 out-of-pocket max for the year. Awesome.
What do you think the pros and cons of self-employment are? Would you rather work for someone else?