RE: Pay rate for contractor with no experience

Subject: RE: Pay rate for contractor with no experience
From: "Harry Bacheler" <hbacheler -at- geo -dot- census -dot- gov>
To: "McFerren, Sean" <sean -dot- mcferren -at- et -dot- pge -dot- com>, "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Wed, 16 Feb 2000 15:02:36 -0500

To All

I have snipped quite a bit of the basic email to provide some overall
information

Here are some interesting numbers - I'll just use percentages of one hours
pay

There are 2080 hours in a year (52 weeks @ 40 hours per week)

For a contract employee - If you don't work, you don't get paid.
Contract people only work about 1740 hours per year
(according to some statistics that I read a while back.)

******************************************************************
*** Salaried employee *** (W-2, with benefits)

Salary -- -- 1.000% (what you think you are getting per
hour)
Benefits -- -- .300% (of your hourly salary -includes all
types of bennies)
Social Security -- .075% (of your hourly salary)
(employer's contribution)
401K matching -- .040% (maybe high, but might be average
contribution
(employer's contribution)
accumulated percentage -- 1.415%

Paid Holidays (you get paid even if you don't work) (10 days @ 8 hours per
day) 80 hours
Vacation (you get paid for not working) (10 days @ 8 hours per
day) 80 hours

(AND you do not have the expenses of running the business)

***************************************************************
*** W-2 employee *** (W-2, with no benefits)

Salary -- -- 1.000% (what you think you are getting per
hour)
Benefits -- -- .000% (of your hourly salary -includes all
types of bennies)
Social Security -- .075% (of your hourly salary)
(employer's contribution)
401K matching -- .000% (maybe high, but might be average
contribution
(employer's contribution)
accumulated percentage -- 1.075%

May or may not get

Paid Holidays (you get paid even if you don't work) (10 days @ 8 hours per
day) 80 hours
Vacation (you get paid for not working) (10 days @ 8 hours per
day) 80 hours

****************************************************************************
**
*** Contract (1099) Employee ***

Hourly Rate (whatever is negotiated) -- 1.000 (what you think
you are getting per hour)

(AND, you are responsible for 100% of the expenses of running your own
business.)

*************************************

This also has been my personal past experience.

Harry M. Bacheler, Jr.
Consultant
VGS, Inc.

"The thoughts, ideas, and opinions expressed in my portion of this email
are mine and mine alone. They are not the thoughts, ideas, and/or opinions
of any past, present, or future employers, or any group that I might belong
to."


> -----Original Message-----
> From: bounce-techwr-l-20951 -at- lists -dot- raycomm -dot- com
> [mailto:bounce-techwr-l-20951 -at- lists -dot- raycomm -dot- com]On Behalf Of McFerren,
> Sean
> Sent: Wednesday, 16 February, 2000 11:27 AM
> To: TECHWR-L
> Subject: RE: Pay rate for contractor with no experience
>
>
> Correct me if I'm wrong, but I read somewhere that
> 20%-30% of a permanent employee's compensation is
> derived from non-salary benefits (401k matching,
> health, dental, etc.). Contractors, both independent
> (1099) and W-2, almost never receive these benefits.
>
.. snip, snip ...
>
> --- Anthony Markatos <tonymar -at- hotmail -dot- com> wrote:
> >
> > The last I remember, $40/hr as a 1099 contractor is
> > equal to (after considering taxes, paid medicial,
> > paid holiday, etc) about $25/hour as a W-2
> > contractor.
>
>





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