Re: agency markups - from a hirer's perspective

Subject: Re: agency markups - from a hirer's perspective
From: Andrew Plato <gilliankitty -at- yahoo -dot- com>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Thu, 8 Aug 2002 11:40:02 -0700 (PDT)

<stevens -at- amdocs -dot- com> wrote in message news:164588 -at- techwr-l -dot- -dot- -dot-

> Note also that in this case I did the finding, not the agency. But there
> could be future cases where they will have to do the screening. What's a
> fair addition for that service?

For w-2 employees, you can expect that 15% is required just to cover the federal
and state taxes. This will vary from state to state a bit, but you can probably
count on about 15%.

Then there is the overhead of processing the paperwork. That depends on how many
people you're contracting, how many support people there are. Most places charge
10% to 25% for overhead.

Then there is profit. Got to allow for a profit margin, otherwise its a pointless
endevour. A 10% profit margin is pretty good for staffing.

Put it together 15+15+10 = 35%. If they want $50 an hour, you should bill $67.50.
But $70 to $75 would not be outlandish either.

Andrew Plato

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