How Much Should You Ask To Get Paid As an IC or Employee?

How Much Should You Ask To Get Paid as an IC or Employee?

Most practitioners underprice themselves — not because they lack skill, but because they don’t know the difference between being an employee and being an independent contractor (IC).
Your rate isn’t random. It should reflect your role, your responsibilities, and the real costs of doing business.

In this guide, you’ll learn how to confidently set your rate, avoid common pricing traps, and understand exactly what you’re worth — no guesswork required.

IC vs. Employee: What’s the Real Difference?

Employee

You get:

• A predictable paycheck
• Taxes withheld
• Equipment and supplies provided
• A workplace and clients handed to you
• Fewer business expenses

You trade:

• Flexibility
• Control
• Earning potential

Independent Contractor (IC)

You get:

• Control over your schedule
• Ability to set your own rates
• Freedom to choose clients and projects
• Higher earning potential

You take on:

• Self-employment taxes
• Marketing and client acquisition
• Equipment, supplies, and insurance
• No guaranteed hours

Bottom line:
Employees trade flexibility for stability.
ICs trade stability for autonomy.

How to Calculate Your Rate as an IC

1. Start with your “take-home” target.
   How much do you actually want to earn per month after expenses?
2. Factor in your business costs.
   Examples:
   • Licensing
   • Continuing education
   • Supplies/equipment
   • Booking software
   • Professional insurance
   • Taxes (budget 25–30%)
3. Divide by your realistic billable hours.
   Not total hours — billable hours. If you have 20 available hours, maybe only 12–14 are paid.

This is why IC rates must be significantly higher than employee wages. A $40/hour IC is often only making the equivalent of a $22/hour employee after expenses.

How to Negotiate Your Pay as an Employee

If the business provides:

• The space
• The equipment
• The clients
• The marketing
• The scheduling
• The insurance
• The admin support

…then your rate will naturally be lower than an IC.

But you can negotiate based on:

• Experience
• Certifications
• Specializations
• Client retention
• Service demand
• Revenue generated per session

Employers love clarity. If you can show how you provide value, you get leverage.

Avoid These Common Pricing Mistakes

• Charging the “going rate” – If everyone else charges $60, that does not mean you should. Base your rate on costs, not comparison.
• Underestimating your expenses – Most ICs forget taxes, equipment replacement, and unpaid admin hours.
• Not raising your rates – If your schedule is full and you’re delivering results, outdated pricing holds you back.
• Apologizing for your fee – Confidence is part of the service.

When (and How) to Raise Your Rates

You should consider raising your rates when:

• You’re booked out consistently
• You’re improving your skillset
• You’re delivering strong client outcomes
• Your expenses have increased
• You’re specializing in higher-value work

Raise rates once a year, or when your demand increases noticeably.

Give clients:

• A 30–60 day notice
• A clear explanation that reflects increased skill or demand
• The reassurance that they’ll continue getting excellent care

Most clients stay. The ones who leave usually weren’t profitable anyway.

Quick Takeaways

• ICs must charge more than employees because they absorb more costs and risk.
• Your rate should come from math, not emotions or local gossip.
• Underpricing yourself hurts your business and your clients.
• Confidence and clarity make pricing conversations easier.