Contracting rates in USA?

**TheDude** · 8 August 2025, 09:26

Originally posted by willendure View Post

Anyone got an idea of what contracting rates are like in the USA?

This would be for programming work in a niche language. Niche enough that they have not managed to find someone locally - they rejected my application initially due to not being inside the USA, but have now given me an interview on Monday. Since employing foreigners is always a little awkward for US companies, I am going to propose that they take me on as a B2B contractor and quote them a day rate in USD. I would be working fully remote in the UK. This also exempts me from IR35 since the company has no UK presence.

Current contract day rate is £500, which is $680, or $85/hour. That seems a bit on the low end for the USA. I had interview for similar work a couple of years ago and that was offering $150/hour.

My initial thought is - what happens if there is a dispute and you don't get paid?

Sounds like chasing payment could be very expensive. You can't even get some boys in a van and go knocking on their door.

**jamesbrown** · 8 August 2025, 09:59

Originally posted by willendure View Post

Anyone got an idea of what contracting rates are like in the USA?

This would be for programming work in a niche language. Niche enough that they have not managed to find someone locally - they rejected my application initially due to not being inside the USA, but have now given me an interview on Monday. Since employing foreigners is always a little awkward for US companies, I am going to propose that they take me on as a B2B contractor and quote them a day rate in USD. I would be working fully remote in the UK. This also exempts me from IR35 since the company has no UK presence.

Current contract day rate is £500, which is $680, or $85/hour. That seems a bit on the low end for the USA. I had interview for similar work a couple of years ago and that was offering $150/hour.

It doesn't exempt YourCo from IR35, YourCo is subject to ITEPA Pt. 2 Ch. 8, it merely exempts the foreign client from ITEPA Pt. 2. Ch 10.

$85 an hour is certainly a very low rate for the US, even for lowly devs

. Somewhere in the $150-$175 range is probably about right for a somewhat niche dev skill, but I guess you'll find out when you propose your rate. Rates are vastly higher in the US than the UK (although contracting doesn't exist as it does in the UK), but the dev market isn't exactly hot in the US right now either, so niche enough that they cannot source locally makes some sense (but is also a bit odd for a dev skill as the US market is wide and deep, albeit mainly for employed devs).

**jamesbrown** · 8 August 2025, 10:02

Originally posted by TheDude View Post

My initial thought is - what happens if there is a dispute and you don't get paid?

Sounds like chasing payment could be very expensive. You can't even get some boys in a van and go knocking on their door.

Depends on the jurisdiction and governing law in terms of the theory/mechanics. OP should seek governing law of England and Wales and the same jurisdiction for disputes (good luck with that). But you're right, it is much less straightforward to settle disputes and PI insurance is a lot higher for the same reason, especially with NA clients. Practically speaking, it's going to be a dead loss.

**willendure** · 8 August 2025, 10:10

Ok, fair point about IR35 it still applies. I am not worried about that though, its project work and would be done in a strictly B2B relationship. Also not worried about not getting paid, worst case it doesn't work out and I move on and its a risk I am ok with.

But thanks for the rate thoughts. Seems like even $150 is at the low end, but also I want to make sure I offer them an attractive rate since they will be taking a small risk too by going for an international supplier. Also the position is for a permie, not a contractor, but I aim to pursuade them that a contractor is a much better way for them to go, otherwise we need an umbrella and non-US employment law and I don't see any advantage in that to either party.

And of course, non-Americans just aren't as clever as a real deal *cough* *chough*. Or maybe we just aren't quite so "great". But realistically, we don't have to pay for private health insurance and all the other things that americans pay for.

I'm thinking $125, or maybe I should start with $140 in case there is a bit of negotiating downwards - I would quite happily take the work at $85 it looks interesting!

**ladymuck** · 8 August 2025, 11:02

I am doing some extremely light touch, low effort, BA work for a Swiss company that is billed in USD. My primary contacts are based in the USA. I'm charging $95 / hour. I barely do 16 hours a week but the extra pin money is nice.

**NotAllThere** · 8 August 2025, 11:25

Originally posted by jamesbrown View Post

It doesn't exempt YourCo from IR35, YourCo is subject to ITEPA Pt. 2 Ch. 8, it merely exempts the foreign client from ITEPA Pt. 2. Ch 10.

Which means it's your company's responsibility to ensure compliance, not the foreign client.

**WTFH** · 8 August 2025, 12:16

Be careful you don't end up in the US tax system.
You'll know that it's happening if you have to fill out a W9.
The you'll be filling out a 1040 and 1099.
Oh, and a 401(k) if a pension is involved.

What I'm trying to say is: don't assume that a one man band based in the UK is going to be treated as a limited company, because that's not really how US contractors work. If you're working for a US company, they will probably want to treat you the same way their US contractors are treated.

**jamesbrown** · 8 August 2025, 12:36

Originally posted by WTFH View Post

Be careful you don't end up in the US tax system.
You'll know that it's happening if you have to fill out a W9.
The you'll be filling out a 1040 and 1099.
Oh, and a 401(k) if a pension is involved.

What I'm trying to say is: don't assume that a one man band based in the UK is going to be treated as a limited company, because that's not really how US contractors work. If you're working for a US company, they will probably want to treat you the same way their US contractors are treated.

Yeah, they will almost certainly want to 1099 the OP, not that is really matters in the end if the work is being done outside the US by a non-US Person. There is no tax liability and no reporting requirement, but most US clients won't have much clue about this. Especially if they are looking for a permie (aside: methinks the OP is far too confident about their IR35 status, given the client wants a permie)

**oliverson** · 8 August 2025, 14:43

I recently finished up on a lengthy contract with a US firm, fully remote, outside IR35 as no physical presence, and me and QDOS calling the shots, UK timezone, etc. with the odd call on an evening if one of their US clients needed support in an afternoon (their time)

Invoiced in USD (no VAT) and paid into my USD bank account. Rate $800, which I understand if I'd stayed on would be around $ 840. It's a rate I was more than happy with as the exchange rate through much of that time was very favourable, unlike now as I've just taken a look. Dreadful at the moment.

I think this firm had contractors from numerous countries, nobody was 'forced' into the US way of doing things, just a simple b2b arrangement, invoices submitted and paid promptly.

Contracting rates in USA?