3 ms·

$90/hour * 40 hours/week * 50 weeks/year (2 weeks vacation!) = $180,000/year. The point the commenter is making is that they asked for $120,000/year, but the r

$90/hour * 40 hours/week * 50 weeks/year (2 weeks vacation!) = $180,000/year. The point the commenter is making is that they asked for $120,000/year, but the recruiter thought that was too much hearing "120" as a per-hour rate, so countered with $90/hour. Hilarity ensues. The OP got more than they were asking for because of the ambiguity.

jaggederest 3y ago
For anyone trying to do this math, in the US, you need to reduce the equivalent pay by about 10-15% for self-employment tax if you're 1099. It's more useful to start with 1500 hours a year, as well, if you're truly contracting (not "full time paid as a contractor for one client") since you'll need to find new contracts and that will take up a surprising amount of your time. I sometimes joke that, when contracting, I spend 80% of my time billing work for client projects and the other 80% (unpaid) getting new projects, leaving me only 80% (unpaid) of my time to spend managing relationships with clients and collaborators, doing taxes, and maintaining the existing business.
- ohdannyboy 3y ago
  I was an employee of a contracting company so I was being taxed like an employee.
  - jaggederest 3y ago
    Which is the best scenario but I've seen people get burned by thinking hourly salary == hourly contracting rate :)
    - jrockway 3y ago
      Insurance is another cost you'll have to pay yourself. I don't really know what's available for contractors, but consider health insurance, life insurance, accidental disability insurance, etc. (Dental insurance isn't really a thing. Budget $400 for your two checkups and don't get any cavities.) Also consider your retirement savings and what you're missing out on from employer 401k matches. Finally, keep an eye on cost of living and adjust your rate accordingly. The dollar is worth at least 20% less than it was 3 years ago. Charge 20% more.
_nalply 3y ago
It this is not employment, this is somewhat low. Years ago in Europe I learnt the rule of thumb to double the amount if you work as a consultant. Companies also use this rule to consider additional expenses to salary: taxes, health insurance, office space, vacancies, unbillable hours and so on.
- scarface_74 3y ago
  I use to use a 1600x multiplier. - 80 hours federal holidays - 160 hours PTO - 240 hours (6 weeks) to find another job or contract. But this was also considering both a w2 contract job working through an agency and my wife worked part time in the school system for benefits. If it was a 1099 contract, I would have to consider self employment tax. I had a great network of recruiters between 2012-2018 when I was going back and forth between contract and permanent positions and the local development market was hot for your standard enterprise DEVs with experience.

jaggederest 3y ago

For anyone trying to do this math, in the US, you need to reduce the equivalent pay by about 10-15% for self-employment tax if you're 1099. It's more useful to start with 1500 hours a year, as well, if you're truly contracting (not "full time paid as a contractor for one client") since you'll need to find new contracts and that will take up a surprising amount of your time. I sometimes joke that, when contracting, I spend 80% of my time billing work for client projects and the other 80% (unpaid) getting new projects, leaving me only 80% (unpaid) of my time to spend managing relationships with clients and collaborators, doing taxes, and maintaining the existing business.

ohdannyboy 3y ago
I was an employee of a contracting company so I was being taxed like an employee.
- jaggederest 3y ago
  Which is the best scenario but I've seen people get burned by thinking hourly salary == hourly contracting rate :)
  - jrockway 3y ago
    Insurance is another cost you'll have to pay yourself. I don't really know what's available for contractors, but consider health insurance, life insurance, accidental disability insurance, etc. (Dental insurance isn't really a thing. Budget $400 for your two checkups and don't get any cavities.) Also consider your retirement savings and what you're missing out on from employer 401k matches. Finally, keep an eye on cost of living and adjust your rate accordingly. The dollar is worth at least 20% less than it was 3 years ago. Charge 20% more.

_nalply 3y ago

It this is not employment, this is somewhat low. Years ago in Europe I learnt the rule of thumb to double the amount if you work as a consultant. Companies also use this rule to consider additional expenses to salary: taxes, health insurance, office space, vacancies, unbillable hours and so on.

scarface_74 3y ago
I use to use a 1600x multiplier. - 80 hours federal holidays - 160 hours PTO - 240 hours (6 weeks) to find another job or contract. But this was also considering both a w2 contract job working through an agency and my wife worked part time in the school system for benefits. If it was a 1099 contract, I would have to consider self employment tax. I had a great network of recruiters between 2012-2018 when I was going back and forth between contract and permanent positions and the local development market was hot for your standard enterprise DEVs with experience.