| Assumptions: # of working hours per year = |
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| (50 weeks * 40 hours/week) less (10 holidays * 8 hours/day) less (5 sick/snow days * 8 hours/day) 1880 hours/year (excluding overtime) |
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| Consulting Alternatives: |
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| Employee (Traditional Consulting Firm) (full benefits) |
W-2 Employee (Traditional Consulting Firm) (no benefits) |
Independent Consultant (Genesis) (no benefits) |
|
| Billing Rate (per hour)***: | $ 90.00 | $ 90.00 | $ 90.00 |
| Salary (per year): | $ 85,000.00 | N/A | N/A |
| Pay Rate (per hour): | $ 45.21 | $ 50.00 | $ 76.00 |
| Annual Compensation: | $ 85,000.00 | $ 94,000.00 | $ 142,880.00 |
| Costs: | |||
| FICA (employer share): | |||
FICA Limit |
N/A |
N/A |
$ 102,000.00 6.20 $ 6,324.00 |
| Health Benefits: | Covered | $ 7,000.00 | $ 8,000.00 |
| Corporate Taxes: | N/A | $ 500.00 | $ 500.00 |
| Payroll Processing: | N/A | N/A | $ 300.00 |
| Liability Insurance: | N/A | N/A | $ 500.00 |
| Accounting Fees: | N/A | N/A | $ 1,200.00 |
| Subtotals: | $ 0.00 | $ 7,500.00 | $ 16,824.00 |
| Apples-to-Apples: | $ 85,000.00 | $ 86,500.00 | $ 126,056.00 |
| *** Rates may vary based on market demand and technology requirements. This spreadsheet is an example of consulting finances. Call us for more information. |
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