Full Time vs. Freelance | a Cost Comparison
Save $25,000+ a Year When You Outsource!
When you hire a full-time employee, you are committing to a lot more than their annual salary. You are agreeing to provide office space and furniture, computers and software. You are also promising health, dental and vision insurance, overtime compensation, and in many instances, to match their 401k contributions.
The opposite is true when you work with a remote paralegal. Aside from their hourly rate, you are not responsible for any operational costs. Your remote paralegal comes equipped with computers, office space, supplies and training.
She also secures her own insurance coverage. And more importantly, you only pay for the time spent completing your tasks. You do not pay for downtime, breaks around the water cooler, or common distractions.
| Full Time Sr. Paralegal (Employee) | Independent Sr. Paralegal (Freelancer) | |
| Compensation | $65,280/yr $34.00/hr x 40 hrs = $1360/wk x 4 wks = $5440/mth x 12 mths = $65,280/yr | $57,600/yr $60.00/hr x 20 hrs = $1200/wk x 4 wks = $4800/mth x 12 mths = $57,600/yr |
| Vacation time, sick leave, paid days, missed days | $5542 | X |
| Healthcare, disability, long-term medical care benefits | $5960 | X |
| Social security and other tax withholdings | $3242 | X |
| Annual bonus, pension and 401k contributions | $5478 | X |
| Idle office time, water cooler breaks and social check-ins | + | X |
| Unbillable hours | + | X |
| Actual Annual Costs! | $85,502+ | $57,600 |