05-08-2006, 05:41 PM
Just figure the costs that the employer would normally pay that you will end up paying. For me, these are:
Fixed Employee Expenses/Fringe Benefits (total is typically 50% of base salary)
FICA employer contrib (7.65%)(you pay this on top of your normal employee contribution when you become a contractor)
401k match 2%
other employer retirement contribution 15%
vacation/sick leave (6 weeks x base pay
medical insurance employer contribution
life insurance
disability insurance
unemployment insurance
bereavement leave
jury leave
Variable Employee Expenses and Business Expenses (total is typically 40% of base salary but varies widely):
non-billable time
marketing and proposals (i.e. looking for and acquiring your next job)
professional liability insurance (if applicable)
business license
professional development (training, conferences)
professional registration (if applicable)
professional memberships
bookkeeping and collections
miscellaneous office supplies
Profit (the sky's the limit)
Fixed Employee Expenses/Fringe Benefits (total is typically 50% of base salary)
FICA employer contrib (7.65%)(you pay this on top of your normal employee contribution when you become a contractor)
401k match 2%
other employer retirement contribution 15%
vacation/sick leave (6 weeks x base pay
medical insurance employer contribution
life insurance
disability insurance
unemployment insurance
bereavement leave
jury leave
Variable Employee Expenses and Business Expenses (total is typically 40% of base salary but varies widely):
non-billable time
marketing and proposals (i.e. looking for and acquiring your next job)
professional liability insurance (if applicable)
business license
professional development (training, conferences)
professional registration (if applicable)
professional memberships
bookkeeping and collections
miscellaneous office supplies
Profit (the sky's the limit)