[dba-Tech] Full-Time v. Contract

Arthur,

The general "rule of thumb" for consulting companies is to charge 2 1/2
to 3 times the salary that they pay to an employee.  So for someone who
is paid $40 per hour, the billing rate would be $100 - $120 per hour.

Joe O'Connell

-----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 11:50 PM
To: Discussion of Hardware and Software issues
Subject: Re: [dba-Tech] Full-Time v. Contract

Wow. That certainly places things (Canadian) in perspective.

On 1/10/08, Jim Lawrence <accessd at shaw.ca> wrote:
>
> 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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