[consulting] Figuring out what to pay an employee

[FGM]

Depends on the country. In France, for example, typical figures:

net salary: 100
salary + social security + taxes etc: 200
billable time over total paid time: 80%: 200/0.8 = 250.
operating margin 20%: 250/0.8 = 312,50


----- Original Message ----- 
From: "nan wich" <nan_wich at bellsouth.net>
To: "A list for Drupal consultants and Drupal service/hosting providers" 
<consulting at drupal.org>
Sent: Tuesday, December 07, 2010 4:55 PM
Subject: Re: [consulting] Figuring out what to pay an employee


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.