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Date:         Tue, 8 Jul 2008 13:39:07 GMT
Reply-To:     Lou <lpogoda@HOTMAIL.COM>
Sender:       "SAS(r) Discussion" <SAS-L@LISTSERV.UGA.EDU>
From:         Lou <lpogoda@HOTMAIL.COM>
Subject:      Re: Reasonable SAS consultant pay rate
Comments: To:

"Joakim Englund" <joakim.englund@GMAIL.COM> wrote in message > Hi, > > I've had a mixture of jobs involving both SAS programing and statistics > using SAS in mainly pharmaceutical related fields during my first three > years since graduating from university. Now, the opportunity has arisen > for > me to move into consultancy (statistics) for a UK client. I have no > previous > experience working as consultant though and I'm wondering what pay rate I > should ask for (currency pounds). Any suggestions? Anything else > worthwhile > thinking about in the world of consultancy?

In the US, in order for a consultant to "break even" with a full time employee, generally the consultant's gross earnings will have to be 1.5 to 2 times the employee's base pay. The differential is needed because consultants don't get paid time off (sick time, holidays, vacations), retirement plans (traditioanl pensions are all but gone, but many companies match 401k contributions at least in part), and have to pay things like self employment tax (the employers portion of social security), unemployment insurance, and medical insurance. In addition, you need to build up a reserve to cover down time - the time between jobs when you're not earning anything. Also, unless you're working through an agency that handles this stuff, you have to make quarterly estimated tax payments because no one's doing payroll withholding and remitting payments to the government. The other rub is that employees get paid through the payroll system and there are laws/regulations about how long the gap can be between the time you earn the money and the time you actually get it, while consultants get paid through the accounts payable system and there can be a month or two delay before the bill is paid. I guess in the UK you don't have to worry about medical insurance, and I wouldn't know about the details of the other stuff.

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