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The contracting company takes a significant cut of that.

• MrFoof 9y ago
  For hard numbers, 80% markup of wages paid out is typical (at least for large contingency recruiters and IT contractors), though it can be higher. $250/hr billed usually results in $125-140/hr in the contractor's pocket, and $110-125/hr for the place that sent them out.
  • fergie 9y ago
    In my experience its about 30%(ish) to the worker gross, which means that the worker gets about 20% after tax. It can be slightly higher or lower depending on the situation.
    • MrFoof 9y ago
      Depends on the org, and the rate. For high rates for specialists (well in excess of $250/hr), this is true (contractor sees 30-40%). For lower-end shops and lower rates (think your Robert Half, your Randstads), the contractor tends to take 50-60% of the bill rate. My sources are VPs from some of the large contingency recruiters, founders of some mid-range consulting shops (~500 person headcount), and having to help run a smaller consulting shop (~20 employees) in the past before going fully independent.