Contractor vs employee calculator
Compare the cost of engaging someone as a contractor versus an employee through an EOR, with the country's misclassification notes.
| Option | Estimated annual cost | What you get |
|---|---|---|
| Contractor | $69,588 | Cheapest on paper. No statutory benefits; reclassification risk in United Kingdom if the relationship looks like employment. |
| Employee via EOR | $75,588 – $77,988 | Local contract, statutory benefits and payroll compliance handled by the EOR. |
United Kingdom contractor risk: IR35 / off-payroll working rules: medium and large private clients must decide status of contractors engaged via personal service companies; if inside IR35, the fee-payer operates PAYE and NIC. Employment status tests (control, substitution, mutuality of obligation) are applied. HMRC can recover underpaid tax and NIC. Not legal advice.
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Not professional advice. Rates, rules and prices change often. Figures here are researched estimates from the sources listed; anything marked “unverified” needs checking with the provider or a local adviser before you rely on it.