| When you decide to become a freelance technical | | | | technical writers is $45 - $50 per hour. Compare this |
| writer you could also get contract work. This means | | | | to Detroit, Michigan where the hourly rate is $70 - $80 |
| that you work for a client for a specified period of | | | | per hour. |
| time. You could be a full time contractor working 40 | | | | The disadvantage of working as a contract technical |
| hours a week or a part time contractor working 20 | | | | writer is that you have to get your own health |
| hours a week. | | | | insurance. And if you need health insurance for your |
| Don't be deceived by the word full time contract. Even | | | | family you'll be paying a lot every month. You'll also |
| though you're working 40 hours a week for the client | | | | have to set up your own Individual Retirement Account |
| you are not considered a full time employee. You | | | | (IRA) account to save for your retirement. |
| won't enjoy any company benefits like vacation, health | | | | Getting Paid by a Third Company |
| insurance and 401K. And your contract could be | | | | If you work as a contractor you may get paid by a |
| terminated without any notice. | | | | third company that has a contract with the client. You |
| Contracts can vary in length from as little as three | | | | will be an employee of this third company. Let me give |
| months to several years long. Some government | | | | you an example of this. |
| contracts last for several years. The longer the length | | | | Say you're hired by Company A and they'll pay you |
| of the contract the better it is for you. You won't have | | | | $50 an hour to go and work at Company B's office. |
| to worry about looking for another client or contract. | | | | Company B is a major Fortune 500 company. It's a |
| As a contractor you will make a lot more money | | | | one year long contract. So for every week you work |
| compared to working as a full time employee. In fact | | | | you make $2,000 in pre-tax dollars ($50 an hour |
| you could easily make $15 - $20 more per hour as a | | | | multiplied by 40 hours a week). |
| contractor than a full time employee. | | | | But you get this money from Company A and not |
| Why the big difference? Because the company | | | | from Company B. Because Company A has placed |
| employing you does not pay anything for your health | | | | you in this contract they'll get their cut too. What you |
| insurance, pension and other benefits. This is a cost | | | | may not realize is that Company A may be billing |
| savings for them. And in today's times of skyrocketing | | | | Company B $80 an hour for you. Company A pays |
| health costs, this is a big saving for the company. | | | | you $50 an hour and pockets the difference. |
| They'd much rather pay you extra money than pay | | | | There are some advantages to being paid by a third |
| for your health insurance costs. The extra money they | | | | party like this. They'll take care of your payroll taxes so |
| pay you is nowhere close to what they would pay for | | | | you don't have to worry about paying Uncle Sam his |
| your health insurance. | | | | dues. You'll submit a W4 to them because they'll be |
| Plus, as a contractor they don't have an investment in | | | | your employer. They may also have a 401K plan for |
| you. You get the job done, get paid and say goodbye. | | | | you to invest in. Some companies also offer decent |
| That's it. | | | | health insurance options. |
| As a contract technical writer you could make from | | | | Other Options |
| $40 - $85 an hour. Depending on your experience and | | | | There are two other options you have as an |
| location in the country this number could be higher or | | | | independent contractor - doing a Corp to Corp or a |
| lower. Different cities have different rates for technical | | | | 1099. A Corp to Corp involves setting up your own |
| writers. This depends on the local industries and | | | | corporation and a 1099 is when you're the sole |
| companies, cost of living and income taxes. | | | | proprietor of the business. If you ever get into a |
| For example, in a growing city like Houston in Texas, | | | | situation where these options are available to you then |
| the average hourly rate for experienced contract | | | | it's best to consult an accountant. |