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Message: <blockquote data-quote="Maerdwyn" data-source="post: 378395" data-attributes="member: 835">You are probably right about equipment and materials, at least in the art industry - it can destroy people in other industries - but a freelancer does have very significant costs that an employee doesn't have.  A freelancer, for example has to cover that portion of the Social Security tax and income tax which an employer would otherwise pay - basically, look at the deductions from the gross pay of a salaried employee's paycheck.  A freelancer's taxes owed on the same gross are basically doubled.  A freelancer must also pay out of pocket for benefits that were never seen on his paycheck (benefits like health care, vacation pay, etc).  These, of course, vary by employer, but even basic employee benefits, such as health care, are significant costs even when a new freelancer suddenly need to pay for his own, and does not have the benefit of buying in bulk like his employer did. (Though there are ways to partially get around this - group purchasing plans and the like, but the cost is still generally more than a corporation pays per individual, because of management fees, etc.) Doesn't mean that one can't succeed as a freelancer, of course (I'm one in a different industry), just that an unexpected and forced shift is very disruptive and has significant costs associated with it that really hurt until enough new business is generated to cover the work lost and then some.</blockquote>

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