Job value to a worker and to social insurance funds, by employment status: Construction workers, 2021 dollars
| No compensation for health and retirement | With full compensation for health and retirement | |||||||
|---|---|---|---|---|---|---|---|---|
| Cost to worker of independent contractor status | Cost to worker of independent contractor status | |||||||
| Payroll employee | Independent contractor | Dollars | Percent | Independent contractor | Dollars | Percent | ||
| Value to worker of job that pays | ||||||||
| $48,210 | ||||||||
| A | Regular pay | $43,129 | $43,129 | $51,006 | ||||
| B | Supplemental pay | $2,285 | $0 | $0 | ||||
| C | Paid leave | $2,796 | $0 | $0 | ||||
| D | Insurance and retirement benefits | $7,877 | $0 | $0 | ||||
| E | [Minus] Paperwork costs independent contractor | $1,016 | $1,158 | |||||
| F | [Minus] Worker contribution to Social Security, Medicare | $3,688 | $6,443 | $7,627 | ||||
| G=A+B+C +D-E-F | Net value to worker of job | $52,398 | $35,670 | $16,729 | 31.9% | $42,221 | $10,177 | 19.4% |
| Value to social insurance funds | ||||||||
| F | Worker contribution to Social Security and Medicare | $3,688 | $6,443 | $7,627 | ||||
| H | Employer contribution to Social Security and Medicare | $3,688 | $0 | $0 | ||||
| I | Employer contribution to Unemployment Insurance and Workers’ Compensation | $2,031 | $0 | $0 | ||||
| F+H+I | Total payments to social insurance funds | $9,407 | $6,443 | $2,964 | 31.5% | $7,627 | $1,781 | 18.9% |
Source: Median annual earnings of 47-0000 Construction and Extraction Occupations from Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2021. https://www.bls.gov/oes/current/oes470000.htm, accessed October 24, 2022.