…/year, $500/week, or $12.50/hour. 40 hours a week for 52 weeks amounts to 2,040 hours. Take out two weeks of vacation, two weeks of sick pay, and two weeks of holidays, and you’re down to 1,800 hours of actual expected work, or $14.44/hour. Now add in the benefit of 7.5% of wages being paid in for the employer’s half of social security taxes: $1,950/year, or an additional $1.08 per hour. That means that an independent contractor making $15.52/hour but with none of these benefits has functionally equivalent wages to an employee with these benefits making $12.50/hour. And in fact, much of the time, independent contractors receive a pay premium roughly equivalent to that differential in wages.