a formula to aproximate wage vs salary: (hourly_wage/1.25) * 2000 = salary so (50/1.25) * 2000 = $80,000 or reversed (salary * 1.25)/2000 = hourly_wage so (80000 * 1.25)/2000 = 50/hr 2000 = 1 year of 40hr work weeks in the US 1.25 assumes you bill up by 1.25 as an independent to cover medical etc. hope this helps, -jp
~1.4 instead of 1.25 is more close to the w-2 consensus. Independent (1099) consensus should be much higher (1.6-1.8). Of course, this is for USA. Why? since average employer spend ~20k for various benefit for each employee (salary from 30k/yr to 150k/yr), plus serverance + unemployment benefit + SS, and you have relative job stability etc. etc. Actually, 1.25 is a very unreasonable estimation. Of course, it could happen too. It depends on your luck and timing. [ July 13, 2002: Message edited by: Roseanne Zhang ]
Generally contractors do better. You do get more per hour. You lose all benefits. You also lose stability. You won't necesarily work 2000 hours in a year, because there may be dead periods between contracts. You're also constantly trying to land and negotiate new contracts. (If you're lucky, you get a long term, e.g. 1-2 year contract.) It's really more of a lifestyle choice. Do you want to be involved long term with a company, and like the stability, or do you like variety and uncertainty (and opportunity). Of course, in a down market like this, contractors are having a difficult time.
posted 18 years ago
I had two Java students in 1999 who were COBOL/DB2/mainframe gurus, and switched to Java after the class. They were hourly consultants and made a lot of money then. Now, one switched to accounting and she is working for government now. She said, no more IT jobs. The other, lost his job, and on the market for more than a year now. He has not given-up on IT, and is learning VB.NET like crazy. He said, next time, I need a permanent job. It just depends on timing, individual, or ... [ July 19, 2002: Message edited by: Roseanne Zhang ]
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