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11 May 2006 @ 10:13 pm
Hourly To Salary Converter  
Does anyone know of a rule to figure out what an hourly rate converts to in terms of an annual salary? It occurs to me that what I'm asking for as a salary range as a salaried employee may be out of line with what I'm currently earning as an hourly one.

Yes, I'm asking for a lot of help this week. That's because I've had two solid weeks of shit and I'm not up to figuring out all the answers myself. Any help anyone can lend would be GREATLY appreciated.
 
 
 
Max Kaehn: Cashslothman on May 12th, 2006 06:24 am (UTC)
The quick calculation is to multiply by 2 to convert from dollars per hour to thousands of dollars per year. (40 hours per week × 50 weeks per year ~= 2000 hours per year.) However, contracting adds an extra level of annoyance in the calculation because you have to pay more taxes as a contractor, so converting from hourly isn’t precise.
fresnefresne on May 12th, 2006 07:34 pm (UTC)
Are you going as a w2 or err (hmmm...forgetting the term) independant.

Basically, it's (40 x rate) x weeks in year you intend to work (i.e., 52 - vacation - (10 Federal holidays * 8 hours). Now then, the fun stuff taxes/SS/medicare, etc. If you're independent, you're paying your share and the employer's share and you'll need to make quarterly payments. Let me take a look this weekend. There's a website/organization for technical contractors that you can work through as a sort of 3rd party control to help ensure you get paid, etc. They also have a number of articles on, well, you're question.
Paul Meyerweregamer on May 17th, 2006 12:36 am (UTC)
As Slothman said, $2000 a year is a dollar per hour, roughly, if you are a permanent employee.

If you are a contractor, the extra taxes you are paying make your hourly rate worth only 1/2 to 2/3 as much. So a contractor makeing $100 an hour should be looking at around $100k a year for a job with full benefits or $133k a year with minimal benefits.

All of this is a rule of thumb, of course.