Start with the global decision boundary
The global service-pricing framework owns the cost, capacity, utilisation, scope and contribution calculation. US worker classification and self-employed tax timing are separate legal and tax boundaries; neither supplies a universal pricing uplift.
Apply the exact local rule delta
| Local question | Reviewed source boundary | Planning action |
|---|---|---|
| Is the worker an independent contractor? | IRS guidance says classification depends on the facts, including the degree of control over what is done and how it is done. | Stop and resolve worker status before relying on a self-employed pricing model. |
| Which obligations are separate? | IRS guidance distinguishes annual income-tax filing, estimated payments and self-employment tax. | Keep each obligation outside the business recovery calculation until assessed. |
| When does cash leave? | Federal tax is generally paid as income is earned, and estimated tax uses four payment periods. | Model payment timing separately from annual profit and price. |
| What does broad QCEW wage context add? | The governed 2024 national private-industry data excludes self-employed workers and employer non-wage contributions. | Use it only to choose a broad peer context; never turn it into a quote, local rate or total-cost benchmark. |
| How should estimated and actual project cost connect? | The quote owns the estimate; the completed job record owns actual cost and margin. | Hand the approved quote scenario to job costing and reconcile variance before changing a future price. |
Stop checks before using the scenario
- Confirm worker classification from the real relationship facts. (not complete)
- Build service recovery from business records and capacity, not a tax multiplier. (not complete)
- Use QCEW only as broad context; do not copy a wage row into the quote. (not complete)
- Reconcile the approved estimate against actual job cost after delivery. (not complete)
- Identify income-tax and self-employment-tax obligations separately. (not complete)
- Map estimated-payment timing as dated cash outflows. (not complete)
- Use non-identifying internal codes in the cash and receivables template. (not complete)
- Obtain appropriate tax or legal review before relying on the scenario. (not complete)
Test a labelled local scenario
Local boundary example
This is a reproducible planning example using stated facts. It is not a market benchmark, eligibility decision, legal conclusion or tax calculation.
| Scenario item | Stated base case | Boundary or next check |
|---|---|---|
| Service recovery model | User-entered costs, sellable hours and scope | No tax multiplier is embedded |
| Worker classification | Confirmed from the actual facts | Stop if the relationship is unresolved |
| Quote and invoice | Hypothetical project scope, quote and invoice issue date | The service planner owns the quote; the job-cost tool owns actual variance |
| Expected customer receipt | User-entered forecast date | A delayed receipt changes cash timing, not an automatic price uplift or legal charge |
| Estimated-tax payment | User-confirmed amount and date | A separate cash event; no liability or deadline is calculated by this article |
Use the registered planner after the boundary is confirmed
- Service Rate & Quote Planner
Set a viable rate and project quote
Local boundary questions
- What percentage should a self-employed person add for tax?
- This guide supplies no universal percentage. Tax depends on facts outside the pricing model; assess obligations separately and use the service planner for business recovery.
- Can a contract label decide independent-contractor status?
- No. IRS guidance says the facts and degree of control matter. Resolve the actual relationship rather than relying on a label alone.
Reviewed official sources
- Independent contractor defined — Internal Revenue Service: Facts-and-control classification and self-employed tax boundary.
- Self-employed individuals tax center — Internal Revenue Service: Separate annual, estimated-payment, income-tax and self-employment-tax obligations.
- Estimated taxes — Internal Revenue Service: Pay-as-income-is-earned boundary and four payment periods.
- Margin101 DataHub: 2024 US private-industry employment and wage context — Margin101: Governed QCEW context with coverage, methodology, limitations and downloads.