120k as a full time, or $100/hr as a contractor(no benefits)? PM role

likefunny
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Obviously many things to consider, but taking ONLY the following three points:

1) assuming no overtime
2) assuming 2080 hours per year
3) the rule of thumb is you take your salary's hourly rate and double it for contractor work

120k / 2080 hours is $57.69 per hour. Rule of thumb says you 2x it, so your hourly rate as a contractor should be ~$115.

Initial assessment says your $100/hr is a little low.


Follow up considerations:
1) do you REALLY need medical insurance? Or are you under 26yrs and are still on your parents?
2) will there be overtime? Overtime is usually 1.5x which means you'd be paid 150/hr for overtime (this could add up)
3) WLB: Would you be working crazy hours as a full time hire? Crazy hours sounds better when you're getting paid $150/hr 🙂

likesmart

Contractor is like ~200k if you work 40h/week. I’d take the contractor role and pay for the benefits myself. Health insurance on your own is not that expensive. And I’d have more cash to play with (investments, etc)

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What's the outlook for more work after the initial contract is up and how long is the initial? I made this move 5 years ago and haven't regretted it but I knew it was niche field where the demand was strong.

100hr W2 for PM role is a little low. I'd counter with $125/hr and settle for sometime in the middle.

likehelpful

That’s the career progression for the $120k role?

Other big factor is whether you need health insurance and if you do, how affordable it is to get your own policy.

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Also both are w2 not 1099

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Is $100/hr the gross rate or net rate to you?

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Location ?

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About 40 hours for both paths. Contract is kind of long term, no end date yet

Net rate to me

Same role

What should the rate be for a PM? I’m at $150/hr, Corp to Corp

NYC LOCATION

As a contractor, do you have your own LLC that the client pay you? LLC with s-corp taxation might help you.

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