jIMOh
Thinks s/he gets paid by the post
Anyone have a good equation to equate salary with a 1099 rate? My math is salary/2000+$15/hr
Is cost of benefits and taxes worth $15/hour?
Is cost of benefits and taxes worth $15/hour?
Convert Salary to 1099
- Thread starter jIMOh
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When I started doing that, I used 1.8 times my former salary (on an hourly basis). Seemed reasonable, and people paid it.
MooreBonds
Thinks s/he gets paid by the post
All depends on what benefits package you need to add. And remember - whether you're doing this as a moonlighting gig or bread and butter doesn't matter. You should charge about the same hourly rate. Obviously, you might have to lower your hourly rate a little bit to be competitive, but don't be shy in asking a reasonable, hourly rate.
When you factor in self-employment tax, vacation, insurance, home office overhead, various other fees, expenses, costs, registrations, insurance, etc., it could be a lot more than $15/hour (partly depends on what your raw salary hourly rate is).
txtig
Full time employment: Posting here.
I did this a while back. I added annual amounts for base salary + bonus + company provided stock grants + company match on 401k + company contribution to health insurance (4 times my cost) + company portion of FICA + company cost for life insurance + company provided retirement contribution. This gave me the total annual company cost of my compensation. I divided that sum by the 44 weeks that I needed to work to earn that compensation (considering six weeks vacation and two weeks of holidays). That gave me a weekly all-in rate, which divided by 40 gave me an hourly rate.
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meierlde
Thinks s/he gets paid by the post
Staff benefit ratios often appear at 39% or more of base salary (includes employer SS, medical, vacation, pension, 401k unemployment workers comp...) Various articles suggest that benefits run about 30% of wages. This bls report suggests 35% in 2014
Employer Costs for Employee Compensation news release text
Employer Costs for Employee Compensation news release text
Brat
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I think 35% is a fair number overall.
6.2% SS
1.45% Medicare
2 weeks vacation = 3.8%
1 week sick leave = 1.9%
8 holidays = 0.4%
(13.75% so far)
Then you need to factor in the cost of health insurance and other fringe benefits common to your industry/profession.
Keep in mind the fact that if you are engaged by a third party they charge at least double your base pay.
6.2% SS
1.45% Medicare
2 weeks vacation = 3.8%
1 week sick leave = 1.9%
8 holidays = 0.4%
(13.75% so far)
Then you need to factor in the cost of health insurance and other fringe benefits common to your industry/profession.
Keep in mind the fact that if you are engaged by a third party they charge at least double your base pay.
rbmrtn
Thinks s/he gets paid by the post
OP
OP
jIMOh
Thinks s/he gets paid by the post
The $15/hour is 25% of my base ($120k/yr)
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