[dba-Tech] Full-Time v. Contract

Jim Lawrence accessd at shaw.ca
Thu Jan 10 21:00:32 CST 2008


Hi Arthur:

When working for a Salary and accepting the normal set of basic benefits it
usually costs the employer about 50% more. That is, if you are getting paid
$35.00 per hour from an employer, on salary, the employer will be required
to pay an additional, 2 to 3 weeks holidays, 50% CPP, 50% Unemployment
insurance, super-annulation, medical, dental, and then the cost of
accounting and filling etc. In addition they have to pay for your work
location, phone, (an cell phone needed), the costs of adding and supporting
you within their infrastructure. So for an employer to pay you $35.00 per
hour it will cost them $70.00 per hour. They will probably have to bill you
out at over a $100.00 to make a profit.

If you are under contract and you expect to clear the same as an employee
($35.00 per hour) you will have to charge $70.00 per hour. Now if you
consider your down time add another $20.00 per hour and you are just about
even.... at a rate of $90.00.

There was a calculation done a few years ago that tried to calculate the
cost of a government employee that was being paid $17.00 per hour. When the
medical, dental, training, CPP, unemployment insurance, accounting, desks,
computers, system support, building rent and maintenance, lights, heat,
management costs etc...;the cost of an employee was between $120.00 and
$160.00 per hour.   

Jim     

-----Original Message-----
From: dba-tech-bounces at databaseadvisors.com
[mailto:dba-tech-bounces at databaseadvisors.com] On Behalf Of Arthur Fuller
Sent: Thursday, January 10, 2008 9:05 AM
To: Discussion of Hardware and Software issues
Subject: [dba-Tech] Full-Time v. Contract

Does anyone have any useful tips on how to calculate a salaried position v.
a contract? Obviously a contract should pay more, since there are no
benefits (dental plan, holidays, etc.), but I've been a contractor for ages
and lately have been asked if I'd take a position instead. I can see the
merits to switching, but I can also see downsides. Let's assume for the sake
of simple argument that your contract wage is $100/hr, and that the position
offers $x + dental plan, 3 weeks holidays, the opportunity to take a course
or two a year at company expense, etc., not to mention the illusion of
permanence. Fact is, I don't think that I've ever worked 49 weeks in a row
as a contractor. So the simple calculation of 40 * 50 * 100 misses the mark
by a wide margin.

Any rules of thumb? Any on-line calculators for this sort of thing?

TIA,
Arthur
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