Open

Employer Spotlight

Recruit Gen Y Stars

You need new tools to attract the new breed of talent - Experience will help you build your team with Gen Y stars.

Go

Ease of Use

Our management dashboard helps you easily post jobs, pinpoint targeted candidates and manage your talent pipeline.

Go

All Needles, No Hay

Don't wait for the best candidates to come to your door - with Experience, you can proactively target top talent.

Go

Build Your Experience

Experience is your most important asset - we're here to help you find that next opportunity.

Go

Tell Your Story

You're so much more than just your resume. Showcase your Experience.

Go

Connections Matter

Introductions are made easy when you have Experience -- connect with alumni, mentors and industry insiders.

Go
Forgot?

Use eRecruiting by Experience on campus?
Find your school here.

Home  > Article

What should my daily contract rate be?

Salary.com

It's relatively easy to calculate an hourly or a daily contract rate (sometimes called a per diem) if you know the annual salary of a full-time person doing that job.

Q. How much per hour should a per diem CPA make in the Jackson, Mississippi, metropolitan area? I'm considered self-employed, and I have 16 years of public accounting experience. My area of specialty is income tax.

A. Per diem is a Latin term that literally means "per day." A per-diem CPA is one whose rate of pay is based on a day of work, rather than on a full-time salary. The term per diem is also used sometimes to indicate a flat fee for daily reimbursable expenses, such as a per diem for full-time employees who travel.

People who work on a per diem basis are often called contractors. Contract work is an alternative to full-time employment that has become more popular in the last decade. In 1997, according to the Bureau of Labor Statistics, 17.2 million people in the United States were self-employed, of whom 10.5 million worked in unincorporated businesses, 4.3 million worked in incorporated businesses, and 2.4 million were self-employed in a second job.

Contractors and other self-employed people can use the Salary Wizard to research the value of a contract position, by following just a few steps. First, determine the full-time salary for the job. Because of your level of experience, I benchmarked your job to a tax accountant III. The median salary for that job in Jackson, Mississippi, is $58,650 as of this writing.

The next step in calculating a per diem rate for the job is to divide the full-time salary by 2080, the number of hours in a 52-week year of 40 hours per week. In this case, the answer is $28.20.

But contractors must pay for their own benefits, including healthcare, vacation pay, sick leave, and more. And contractors can't pay themselves bonuses. So it is fair for an employer to pay a contractor more than the equivalent hourly rate of a full-time job. Depending on the cost of benefits in the region, contractors should charge a premium of 25 to 35 percent. In Jackson, I would stay closer to 25 percent.

I recommend that you charge your clients $35 per hour for your services, or $280 per day.

Good luck.

- Erisa Ojimba, Certified Compensation Professional


Copyright 2000-2004 © Salary.com, Inc.






More Related Articles


Scholarships for Graduate Students
Graduate school costs a lot of money, and if you are still trying to pay off previous school loans how can you possibly get a Master's degree without acquiring a lot of additional debt? One way is to find and apply for scholarships for graduate students.

Investing in Your Future
Managing your money wisely during your twenties can make a remarkable difference in the long run.

Should I be rewarded for the revenue I bring in?
If your job responsibilities involve bringing in revenue but you're paid a flat salary, it may be time to ask your employer to recast your job as a sales position eligible for commissions or other forms of variable incentives.



Google Web Search
Didn't see what you were looking for?
 
powered by Google
Copyright ©2017 Experience, Inc Privacy Policy Terms of Service