Date:         Thu, 17 Sep 1998 01:04:13 GMT
Reply-To:     lpogoda@AOL.COM
Sender:       "SAS(r) Discussion" <SAS-L@UGA.CC.UGA.EDU>
From:         lpogoda@AOL.COM
Organization: Deja News - The Leader in Internet Discussion
Subject:      Re: Contract vs W2

In article <6tm8r3$e80$1@nnrp1.dejanews.com>,
  shickey@earthlink.net wrote:
> This may be a bit off topic, but being new to SAS contracting I have a
> question.  How does one compute a fair hourly rate for a contract based on a
> W2 pay rate?  I have no idea what to ask for a new contract since I am paid
> as an employee of a contract agency at the present.  I know what I make per
> hour now, but I am sure I should be adding to that to cover taxes etc..., but
> I am not sure how much to add.        Any help would be appreciated.  Scot
>
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To stay more-or-less even with what you make as an employee, the rule of
thumb is 50% to 100% more.  Just how much depends somewhat on personal
circumstances - you might be receiving higher than average compensation now,
for instance, your spouse may be able to cover your medical insurance for
"free", agencies provide the needed liability insurance..  Incidentally,
contractors can get paid on a W2 basis - many agencies all but insist on it,
and there are companies that do the "back-room" billing and payroll/taxes
stuff (for a fee, of course) and send you a W2 at the end of the year.
 
Rates are set by the market, not by what an individual needs to stay even.
Agencies get a percentage, so it's in their interest (within reason) to get
you as high a rate as possible.
 
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