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Subject:Re: how do you structure a temp-to-perm contract? From:dmbrown -at- brown-inc -dot- com To:"TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com> Date:Sun, 19 May 2002 15:20:08 -0700
Liza Boyd wrote:
>
> How do you convert from a salary into an hourly
> contracting rate. Eg: if normally I would earn
> $50K/year for this job as a FTE, what hourly rate
> do I charge as a contractor?
The standard is to divide the annual salary by 1,000. By that measure, you'd want to charge $50 an hour. That calculation allows you to provide your own training, maintain and upgrade equipment, take a couple of weeks off, and pay for health care and other minimal benefits.
Since you're talking about a much shorter contract period, you probably don't need to worry about most of those expenses (except insurance, perhaps). Anyway, if you're OK with a $50,000 salary, maybe you go with $40 an hour for a couple of months. (It'll certainly be more palatable--people often choke on contractor rates because they don't understand the expenses associated with long-term independence.)
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