Employee	Contractor	Increase
	Hours per year
	days/year	365
	52 weekends + Fridays	-156
	days vacation/year	-10
	statutory holidays/year	-9
	work days/year	190
	hours/day	10
	hours/year	1,900
	Hourly rate	50
	Various costs, mainly vehicle
	miscellaneous		100
	truck insurance/month		150
	maintenance/month	200	300
	km driven per hour	7	15
	km driven per year	13,300	28,500
	litres/100 km	12	14
	price of gas per litre	1.60	1.60
	Annual vehicle costs
	insurance		1,800	1,800
	maintenance	2,400	3,600	1,200
	gasoline	2,554	6,384	3,830
	vehicle replacement	10,000	12,500	2,500
		14,954	24,284	9,330
	Miscellaneous		1,200	1,200
	CPP	3,500	7,000	3,500
	EI	953	953	–
	Medical Insurance	2,450	4,440	1,990
		21,857	37,877	16,020
	Earnings as employee			95,000
	Increase in costs			16,020
	Breakeven before tax savings			111,020
	Tax savings			9,000	Note 1
	Breakeven after tax savings			102,020
	Breakeven	hours	billable	rate	total
	Before income tax savings	1,900	1,710	64.92	111,020
	Note 2	1,645	1,480	75.00	111,020
	After income tax savings	1,900	1,710	59.66	102,020
	Note 3	1,511	1,360	75.00	102,020
	Note 1: As a contractor, you would save about $9,000 in income tax.
	Note 2: This does not account for a reduction in gasoline costs of				856.80
	Note 3: The cost of gasoline, less the tax impact, would decrease				836.51