I forgot to add the justification part... So why is it 2.5 above hourly salary?
Money for vacation, sick and personal time - Consulting for yourself, you don't work, you don't get paid Retirement funds - Somebody has to pay me to golf everyday and travel after I'm 65 1/2 ;-) Medical and life insurance - This is the expensive part, without a bulk discount, insurance is like $2000 a month Business equipment/space/expenses - Somebody's got to pay the rent for your office space and equipment and related expenses Taxes - Uncle Sam wants his cut too, the figure varies but it's somewhere between 25 - 30% of your pay... Misc. Benefits - Enjoy that free coffee, gym membership, or other activities at the office? Now you get to spring for them... In addition, you are essentially running a business now so to gather new business you have to pay for advertising, treating new and existing clients to lunch or dinner to promote new business, pay for your own training and certifications, and those trips to MacWorld, GeekCruise, etc... So how much does that really add up to for you? For me 2.5% isn't even close to being enough to cover it all... Now granted if this is just your rate for side jobs, you can subtract as needed to make your rate competitive for your market area... -Tim -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Timothy Boyden Sent: Thursday, January 18, 2007 12:14 PM To: NYPHP Talk Subject: RE: [nyphp-talk] Followup: Going weekly rate for phpdeveloper/coderin NYC these days? I can help answer that... Generally speaking your consulting rate should be 2 1/2 times your calculated hourly rate of a salaried position to account for benefits and taxes. So if you have a salary of $60,000 a year, your consulting rate to be equitable with your salaried position should be approximately $72.12. $60,000 salary / 52 weeks = weekly salary / 40 hours = salary per hour * 2.5 = consulting rate At least that is how it was explained to me. Real world - at least from my experience (and apparently Ed's) - doesn't usually work out that way though... -Tim -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Allen Shaw Sent: Thursday, January 18, 2007 11:56 AM To: NYPHP Talk Subject: Re: [nyphp-talk] Followup: Going weekly rate for php developer/coderin NYC these days? Chris Shiflett wrote: > $60 / 2.4 = $25 Respectable post to be sure, but I couldn't figure out what the "2.4" is. A clue for this poor soul with none, Chris? -- Allen Shaw Polymer (http://polymerdb.org) slidePresenter (http://slides.sourceforge.net) _______________________________________________ New York PHP Community Talk Mailing List http://lists.nyphp.org/mailman/listinfo/talk NYPHPCon 2006 Presentations Online http://www.nyphpcon.com Show Your Participation in New York PHP http://www.nyphp.org/show_participation.php _______________________________________________ New York PHP Community Talk Mailing List http://lists.nyphp.org/mailman/listinfo/talk NYPHPCon 2006 Presentations Online http://www.nyphpcon.com Show Your Participation in New York PHP http://www.nyphp.org/show_participation.php _______________________________________________ New York PHP Community Talk Mailing List http://lists.nyphp.org/mailman/listinfo/talk NYPHPCon 2006 Presentations Online http://www.nyphpcon.com Show Your Participation in New York PHP http://www.nyphp.org/show_participation.php
