One way to determine the annual salary might be with the following formula.
Work days per year=230 based on the following-
[52 weeks x 5 days/week, less 10 holidays*, less 10 vacation days*, less 5
days* for illnesses and/or personal time, less 5 days* for other
contingencies such as SUGI, AA meetings, etc.]
* Consultants normally do not get paid for non-workdays.
230 days x 8 hrs/day x $52/hr = $95,680 annual consulting fees.
Generally, the cost to an employer of an employee is in the range of 50 to
75% of the employee's annual salary. This includes taxes, holidays,
vacations, bonuses, etc. So, if the employer were able to spend $95,680 per
year for a fulltime employee, the fte 's base salary would be in the range
of $95,680 divided by 1.75-1.50, or 55k$-64k$.
Other considerations include, for example, the cost of traveling to SUGI.
The employer normally pays this for the employee. As a consultant, the cost
is yours. Same goes for materials and supplies such as manuals, software,
PCs and, lest we forget, taxes for Uncle Sam.
From: sas programmer [mailto:sasprogrammer@HOTMAIL.COM]
Sent: Monday, November 11, 2002 2:30 PM
Subject: Contractor Versus Permanent Salary Differences
What do you think would be the salary of a sas programmer as a full
time employee who is a consultant making dollars 52 per hour ?
I am trying to get a perm position and its a dilemna trying to figure
out the salary rate , everyone is very uninformative when it comes to
questions like these
You're answer will help me negotiate better with these HR people