You should be using pre tax numbers for expenses.
Still, assuming his research is accurate at best it comes out at like ~$12 per hour before tax, unless you play russian roulette on the insurance. This of course assumes that it's your full-time job, otherwise the car payments will further reduce the hourly rate.
But you are right, I should deduct expenses before taxes.
I don't think the end-result is terribly different though. Maybe $1-2/hr
Self employment tax is higher than just social security tax so you need to look at after tax earrings to compare a 1099 job to a w-2 job. Also, more expences can be deducted as an uber driver than a wage slave ex: a percentage of your cell phone bill and car depreciation.
- Car payments are the same
- Gas is the same
- Insurance is the same
- Vehicle wear and tear is the same
I'm sure I made a mistake somewhere or overlooked something...
"You work 215 hours per month on average (50 * 4.3 weeks) and make $4,300 revenue during that time (or $51,600/year). - Subtract self-employment tax 15.3% - ~$7900 - Taxable income 37,650 - ~$5,300 in taxes so subtract that"
You don't pay self employment tax on revenue you pay it on profit. So if your paying ex:10,000 in expences for gas then you would pay (51,600 - 10,000) * 15.3% = 6364$ in self employment taxes.