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Old 09-12-2014, 02:53 PM   #41
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I stayed home sick the last couple of days and heard my husband (retired) answer the phone. I noticed that although he started out friendly, he became terse with them and hung up quickly. I asked what it was about. It was the man they hired for his job, a previous outside contractor with whom my husband never got along. He always tried to cut corners, hide mistakes, etc. So he was calling to ask if my husband would volunteer his time to come in for a few days and help him understand some of the regulations. My husband was so burnt out when he quit and has no desire to ever go there again, much less to volunteer to teach someone something he should know, in that supervisory role. My husband advised him to take some refresher courses.

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Old 10-01-2014, 10:42 PM   #42
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Originally Posted by nwsteve View Post
Having done this once, suggest you be sure to gross up your previous rate to cover your share of the FICA as well as any state employment taxes, as well as what they were paying to cover your benefits. As a rough guideline, 25-30% over your actual pay rate.
Good advice, as most folks don't realize the directly paid extra taxes when self employed, as employers hide it from employees.
30% is minimum increase needed.

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Old 10-02-2014, 05:26 AM   #43
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Originally Posted by Sunset View Post
30% is minimum increase needed.
Actually, 30% is the minimum, just to keep even. I would not do it for less than double. Find out whet the going consulting rate is, then charge that.

Most companies would have to pay their own 7.65% for FICA, a federal unemployment tax, FUTA, they would have to also pay a state unemployment tax, have a workers compensation policy. They would also have to pay benefits, like sick pay, vacation and holidays, pension and healthcare. And even benefits like tuition reimbursement and the like.

Add them all up, and it gets expensive. Unless you want to work, do not be the cheapest worker that they can find. They need you, they are the ones that need to pay.
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Old 10-02-2014, 07:49 AM   #44
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I have consulted off and on for the last six years. I don't even get out of bed for less than 2x my former hourly salary. Yes, it might be high but it serves to weed out the folks I don't really want to work for in the first place. I also find that with a higher rate the client tends to listen more carefully to what I have to say.
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Prev. employer wanting consulting for free
Old 10-04-2014, 02:16 PM   #45
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Prev. employer wanting consulting for free

Twice your salary rate per hour is what I have charged. Considering they don't in effect use an internal OH multiplier for you as a contract employee, the project will usually still be showing your rate as lower on the budget than when you're in internal employee. It's a win win financial deal. Use the extra income to open an SEP IRA and pay expenses you now are responsible for.

The general rule is something between 2 and 3 time what they would pay you as a company employee. So twice is basically a bargain price for them. Anything less is a fire sale.

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