[consulting] Figuring out what to pay an employee

[nan wich]

When I was with IBM, the ratio was much higher. I got about $40/hr, while they 
billed me at $300. Of course, IBM has a lot more overhead on billable people.

The typical "burden" for taxes, benefits, etc is about 40%, so billing anything 
less than 1.5:1 is a loss.
 
Nancy
 
Injustice anywhere is a threat to justice everywhere. -- Dr. Martin L. King, Jr.



________________________________

From: Tom Geller

If you'll be billing out this person's hours, one way to approach it is as a 
fraction of the employee's billable rate. 


When I worked in public relations it hovered around 2-1/2. So if the billable 
rate was $50/hour, the employee got $20/hour, as $50 is ($20 * 2.5). Multiplied 
by 2,000 hours/year (50 weeks, 40 hours/week) = $40,000/year.
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