NYCPHP Meetup

[Timothy Boyden]

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: talk-bounces at lists.nyphp.org [mailto:talk-bounces at lists.nyphp.org]
On Behalf Of Timothy Boyden
Sent: Thursday, January 18, 2007 12:14 PM
To: NYPHP Talk
Subject: RE: [nycphp-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: talk-bounces at lists.nyphp.org [mailto:talk-bounces at lists.nyphp.org]
On Behalf Of Allen Shaw
Sent: Thursday, January 18, 2007 11:56 AM
To: NYPHP Talk
Subject: Re: [nycphp-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)
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