NYCPHP Meetup

[inforequest]

Keith Casey mailinglists-at-caseysoftware.com |nyphp dev/internal group 
use| wrote:

> On 6/18/07, Greg Rundlett <greg.rundlett at gmail.com> wrote:
>
>> Annual Salary/2,000 = hourly rate
>>
>> There are 52 weeks /yr
>> minus 2 weeks /yr vacation
>> = 50 weeks @ 40 hrs / week
>> = 2,000 hours / yr available for work
>>
>> This is a rough estimation of the hourly *Cost*
>> E.g. for worker "John" 100K annual rate (~$50/hr)
>
>
> Just to throw out one additional tidbit... this is *only* considering
> the actual dollar-cost of the person's salary but that's not the whole
> picture.
>
> Once you factor in Social Security (employer's half), health
> insurance, workers comp, 401k contributions, office space, etc, you
> can add anywhere from 20-33% to this number to represent the *cost* of
> the employee to the employer.
>
> The last time I was with the Feds and we were calculating FTE's, we
> used +31.5% on top of base salary... so the above $50/hour should be
> $66/hour to be a real FTE.
>
> kc
>
Yes and in grant world (where proposals are written to get government 
contracts) each institution has an "indirect rate" pre-negotiated with 
the government. So before even applying for a contract, you negotiate 
the overhead that covers all those costs.

Last I heard Johns Hopkins was in the 70% range... meaning if they bid 
$100k as the cost for doing the work, they would get a check for $170k. 
A lesser institution may have negotiated a 40% indirect rate, so when 
they bid the same $100k to do the work they would actually get $140k.
 
You can probably see how the government tries to separately manage the 
larger issues of the cost of quality / credit history/ impact of 
regional economies from the actual costs of doing the work.



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