It does become more expensive to be a contractor, however you do get access to more write offs.
I would base my pay request on your total compensation and not just salary
Current salary + estimated value of benefits (Healthcare, life insurance, eye glass coverage etc)
There are other concerns, you are giving up the right to notification and severance packages, they can pretty much axe you on the fly.
I would see how in demand your skill set is as a contractor, and use that in terms of negotiating your deal too, because you can find your hours cut fairly easily as well.
Because they no longer have to do deductions, pay shares of benefits etc, I would ask for a share of those savings as well.
Basically in this scenario the company reaps pretty much all the benefits and savings if you agree to the same salary, you lose your protection, but gain some freedom.
I guess the question is, what happens if you refuse? Are they willing to lose you if you want to stay as an employee.
Because going contractor means that you're going to have to put a lot more effort into the maintenance of your job.
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