Average Salaries

• According to the American Planning Association's 2010 Salary Survey, less than 4 percent of planners surveyed earned less than $40,000 per year, 27 percent earned between $40,000 and $59,999, 30 percent earned between $60,000 and $79,999, 19 percent earned between $89,999 and $100,000 and 19 percent earned over $100,000. The Bureau of Labor Statistics, however, reports that the average salary for an event planner in 2010 was $48,780, with only 25 percent earning over $59,130. The mean hourly wage, according to the BLS, was $23.45.
  
  

Experience

• The biggest factor determining a planner's salary is experience. While you have more flexibility as a self-employed person in deciding the rate to charge your customers, a client is likely to pay you more if you have more experience. After you gain three years of experience, you can take the exam given by the Convention Industry Council to become a certified meeting professional. This credential may justify charging your clients a higher fee.
  
  

Location

• In certain areas of the country, residents are more willing to pay more for the services of an event planner. The service is in higher demand in these areas, as well, particularly if you can set yourself apart from others who offer the same type of service. Typically, if you set your business up in a major city, such as New York, Chicago or Los Angeles, you are more likely to draw a higher fee or your services.
  
  

Self-Employment Tax

• As a self-employed person you must pay twice the Social Security and Medicare taxes that a person employed by someone else must pay. While an employee pays half of these taxes and the employer pays the other half, you incur both halves when you own your own business, which affects the income you receive. While you can claim a tax deduction for one-half of this tax, the savings are proportional to your income tax bracket. For example, if your self-employment tax for the year is $2,000 and you are in the 25 percent tax bracket, you can deduct $500 of the extra taxes you pay. If you are in the 10 percent tax bracket then you can claim a deduction of $200, whereas if you are in the 33 percent bracket your deduction is $660.