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So true, So true....
-Mike
----- Original Message -----
From: "Bill Patterson" <patterson@computer.org>
To: <plug@lists.phillylinux.org>
Sent: Sunday, December 29, 2002 9:45 AM
Subject: Re: [PLUG] Jobs -- YES
> Actually there are a few reasons why consultants often get more than that
per
> hour.
> 1. They take on a much greater risk to their income by being
consultants.
> It is very easy to go from over $50/hr. to nothing.
> 2. They are required to be able to do things that there aren't enough
> employees to do. This can mean a considerable amount of training time and
> expense.
> 3. They have to pay for any and all benefits they get. This includes
the
> 7.75% social security tax that your employer pays. This includes all HMO
or
> hospitalization premiums. This includes all workers compensation, life,
> liability, and other kinds of insurance. Business owner employees are
REQUIRED
> to pay into the unemployment compensation funds, but are NOT allowed to
take
> any benefits from it.
> 4. Pennsylvania has wanted about $300 per year minimum from
corporations
> just to get started. New Jersey is close at $280. And it doesn't matter
> whether you are incorporated in Delaware, each state in which you do
business
> wants its cut. On top of that a corporation is frequently expected to
carry
> business insurance ($500-$600 minimum). Errors and omissions insurance
can be
> $1000-$2000. Accounting fees can easily hover around $1000.
> 5. If the consultants are brokered the broker takes a percentage that
the
> client pays and that the consultant never sees. (Typically this is a
20-40%
> markup.)
>
> You can't take the hourly rate billed to the client, multiply it by 2000
> hours/year, and get an annual salary equivalent. It just doesn't work
that
> way. Most clients understand this.
>
> I have to be careful or I'll talk myself out of consulting.
>
> Bill Patterson
>
> gabriel rosenkoetter wrote:
>
> > On Sat, Dec 28, 2002 at 11:51:31PM -0500, Mike Leone wrote:
> > > That $50 an hr almost certainly is not a salaried rate, Gabe. Most
likely
> > > consultant fee. And that's not high, for consultants.
> >
> > Oh, I understood what it was. And it's being not high for
> > consultants is only that much more ridiculous. :^>
> >
> > --
> > gabriel rosenkoetter
> > gr@eclipsed.net
> >
>
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> > Part 1.2Type: application/pgp-signature
>
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