February 21, 2007

Letters To The Editor For February 21st

EIN vs. Social Security Number

Thank you for the information on how to obtain an EIN. I've done
income taxes for years and have always placed my S.S. # at the bottom
of the form, with my signature, name and address. This year I decided
I was doing taxes for too many "unknowns" and using my S.S. #
bothered me. I decided to get an EIN for next tax season--when lo and
behold, here comes your article. I went online, filled out the form
and in less than two minutes, I now have an EIN number!

Thanks!

Donna

Whose Fault is It That I Didn't Get Paid?

Dear Angela,

I have a comment about this week's Ask The Expert: Whose Fault is It That I Didn't Get Paid? Newspapers are different when it comes to rights than magazines. There are no first publication rights. As long as that writer submits her articles to other newspapers outside the original paper's circulation area (the general rule is at least 100 miles away) she can send them to as many newspapers as she wants. This is the way writers make money writing for newspapers, which notoriously pay very low rates.

The exceptions to this rule are newspapers that are considered national: The New York Times, The Washington Post, USA Today, and Christian Science Monitor. Also, some larger newspapers do have contracts that place limits on where the writer can sell the article to others. Generally, though, most newspapers do not have contracts and the writer is free to send an article to as many places as she wishes.

However, she would not be able to send the articles to a magazine for first publication rights. She would need to let them know it was a reprint and where it first ran.

I enjoy reading your newsletter each week. Let me know if you have any questions.

Best Regards,

Linda A. Odum
Freelance Journalist

Simple Formula for Determining Writing Fees

A recent letter in your newsletter suggested that writers set their fees based on a formula that involved looking up the average salaries of writers, reporters and editors in your area on salary.com, and dividing by 52 weeks and then 40 hours to get your hourly fees.

Any freelance writer who sets fees based on this formula is seriously underpaying him/herself and undercutting freelancers who are trying to make a living.

Salaried employees generally receive benefits from their employers, including insurance (at least unemployment and worker's compensation, and sometimes health insurance), paid sick leave, paid vacation days, and perhaps pensions or contributions to 401K retirement plans. The freelancer has to cover all those expenses. This can add up to as much as 40% of the actual salary.

In addition, as a freelancer/self-employed person you pay double what an employee pays in social security tax. That's another 6.2% that comes out of your pocket instead of your employer's. You may also be required to pay local and state business taxes.

In my experience, a freelancer should charge a MINIMUM of twice what a salaried employee would make doing the same work. If salaried writers are making $25 an hour, you should be charging at least $50.

Of course, you need to remain competitive with other freelancers, so it makes much more sense to find out what other contractors in your area are charging than to base your fees on those of employees.

Debra Littlejohn Shinder, MCSE, MVP
http://www.debshinder.com

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In reference to the letter regarding hourly rates for writers, I think we have to take into account that staffers also receive benefits. This isn't true for freelancers, which means that freelancers should command higher rates. Using a freelancer is less expensive for companies simply because they don't have to provide benefits. I would never work for $17.50 per hour or even $34 per hour. I receive more than that from clients all over the world.

Best,
Melanie Votaw

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Angela,

Just read Barbara Martin's suggestion on how to figure hourly writing rates.

The only problem with that method - the salaries are listed for employees who are also getting benefits paid by the employers (health, etc.). An independant writer needs to adjust for his or her overhead. Any figures gleaned from salary.com would need to be the low point from which to start.

Thanks for listening.

Jan Hawkins
Alexandria, KY

Balancing a Large Family while Working at Home

Angela,

I almost hate adding to your emails but I had to respond to your essay about how you work from home. I too have mastered laptops and nursing. It is a blessing to work this way.

We do not have a housekeeper, either, but I have found that grocery shopping online has taken one of my most dreaded chores of the week and made it pleasant. Although I pay a fee to ShopRite so that they can shop and I just have to pick up my groceries I save a bundle. I can plan around their specials better and I am not tempted by all those things in the aisles that I do not really need. I also save time and can shop at midnight from the comfort of my couch. Bill swings by to pick up the groceries on his way home from school (teacher). I see ShopRite does not have services in Maine yet, but there are some other online shopping issues that may be helpful to you.

Take care,
Patrice

Publisher's Note:
We can't use peapod.com in Maine, and none of our local grocery stores offers
delivery. However, Amazon.com does have a grocery department with 22,000 non-perishable items and they will ship for free if you spend $25 or more. I just started using them to order dry goods and other non-perishable items (toilet paper, dish soap, popcorn, cereal, baking supplies, etc.) in bulk. Click HERE for Amazon's grocery section.