Like it or not, here’s what you’ll likely make if you are a consultant and plan on converting to a full-time  job or vice-versa.  

 Consultant to Permanent Conversion Scale

Consultant Hourly Pay                                                                   Full-time Employee Pay

$25 per hour                                                                                                      $40,000

$35 per hour                                                                                                      $50,000

$40 per hour                                                                                                      $60,000

$50 per hour                                                                                                      $70,000

$60 per hour                                                                                                      $80,000

$65 per hour                                                                                                      $90,000

$70 per hour                                                                                                      $100,000

$75 per hour                                                                                                      $115,000

$80 per hour                                                                                                      $120,000

Variables to Consider for a Consultant:

Length of contract, Temp to Perm, Work from home, # of hours per week, Overtime, Technology, Client

When was the contract signed, different Market Conditions?

W-2 vs 1099 (Taxes need to be paid by company or individual 6.2% SS or 1.45% Medicare of Gross Pay)

Think like a consultant:

160 hours per month (2 weeks vacation, 9 holidays, 3 sick days, 10 days to find a new job), so to figure out what the candidate would earn in 1 year of consulting, probably multiple (Rate * Hours per month * 10.5/12 months)

Cost of Benefits, $500 to $1,000 individual or $1,000 to $3,000 family

Talk to accountant about write-offs, filing taxes, etc

Rules of Thumb:

Once a consultant, always a consultant

Consultants make more $ than a fulltime employee

Fulltime employees converting to contract roles worry about Benefits, Stability and Taxes

Big Companies hire Consultants