Reply to: How much does a 40K p/a employee cost?

[DimPrawn]

No one will know about the benefits I don't think... just matter of adding a few lines to a few tables here and there and getting a card.

As far as IR35 goes, this is probably the worst one so far In fact I'd go so far as to say, I'm being foolish by pretending it's not inside.

What's the penalty if they catch u?

6 months in prison, was in the small print of the last budget.

[Olly]

No one will know about the benefits I don't think... just matter of adding a few lines to a few tables here and there and getting a card.

As far as IR35 goes, this is probably the worst one so far In fact I'd go so far as to say, I'm being foolish by pretending it's not inside.

What's the penalty if they catch u?

[The Wikir Man]

That and it includes permie benefits that help prove that I am a disguised employee inside IR35.

FTFY.

[Bright Spark]

Sounds like they don't really need a contractor, they need a fairly low paid permie.

Sounds like they need Bob, where is he when you need him.

[Lester]

Bear in mind that the employers direct costs may not go from £45,000 to £0 if the employee is going on maternity leave.

If they only pay Statutory Maternity Pay then their additional costs will only be a few hundred quid but if they have an enhanced scheme it could cost them several thousand while she's "benched".

[Olly]

Sounds like they don't really need a contractor, they need a fairly low paid permie.

I'd move on.

You'll only end up taking this crappy "contract", get lots of IR35 hassles and then one month in find a £350 pd contract on the table somewhere else.

Onwards and upwards!

They advertised it as a fixed term permy role. I guess you're completley right about the IR35, but then again, nearly all IT contracts seem to sale close the wind on that one.

Hmmm...well I've not been offered it yet. If I am then will play hard ball...£250 and guaranteed chance to gain skills and experience or no go.

P.S. £350s actually a bit low compared to what I've got in the past but I'm getting stale and really need to take a year to get on top that.

[Olly]

look they are always going to pay what market rates are because
as a contractor it's quite easy to leave as soon as better paying
contracting job comes up, not so easy with permie roles.

So they need to have a budget that will pay the market rate for a
contractor in case you do decide to leave next week because you get a
better rate.

Nope....there's always someone out there that will do it for peanuts, a monkey no doubt

I'm only considering because it's a civilised location and a chance to get in the thick MS BI end-to-end. I see it something like an apprenticeship. That and it includes expensive gym and racquet club membership.

[DimPrawn]

Sounds like they don't really need a contractor, they need a fairly low paid permie.

I'd move on.

You'll only end up taking this crappy "contract", get lots of IR35 hassles and then one month in find a £350 pd contract on the table somewhere else.

Onwards and upwards!

[Bright Spark]

look they are always going to pay what market rates are because
as a contractor it's quite easy to leave as soon as better paying
contracting job comes up, not so easy with permie roles.

So they need to have a budget that will pay the market rate for a
contractor in case you do decide to leave next week because you get a
better rate.

[Olly]

If the client has £40k allocated for a contractor, then it's £40k and no more. This will have been allocated from his budget for the project. No use talking about costs for a permie, FTE costs will be in a different cost centre. Blame the bean counters.

That would mean billing £174 a day and taking 23 days hols + 8 public.

I'd rather stick needles in my eyes than bill that for a £325 a day role for a year

[Fat Dave]

If the client has £40k allocated for a contractor, then it's £40k and no more. This will have been allocated from his budget for the project. No use talking about costs for a permie, FTE costs will be in a different cost centre. Blame the bean counters.

[Olly]

A few other things is the employer has to pay Employers NI for permanent
employees, other benefits like BUPA, subsidised meals, season ticket,then
he's got extra admin costs like paying HR and running the payroll department.

To be honest you need to see what the market is paying for a contractor
with your skills set and experience check this on jobserve etc as rates do
vary based on location, demand / supply factors.

Nope!

The employer has 40K to spend! Except I need to explain to them that it's not really 40K they have, it's more because of the NI and stuff.

I already know the going rate is low £300s as I posted earlier.

I'll check if they provide health care, though from what I understand wouldn't cost them a fortune.

Yet AGAAAAIIIIIN HR costs / payroll are not a factor, they'd have to pay all that whether I was there or not, one bod on 12 mnth maternity cover will make NO DIFFERENCE!

[Bright Spark]

A few other things is the employer has to pay Employers NI for permanent
employees, other benefits like BUPA, subsidised meals, season ticket,then
he's got extra admin costs like paying HR and running the payroll department.

To be honest you need to see what the market is paying for a contractor
with your skills set and experience check this on jobserve etc as rates do
vary based on location, demand / supply factors.

[Olly]

Don't forget the cost of having to get shot of people you don't need/want -VR/CR. Sick rates are often calculated at 10 days avg I think (that might be just public sector !)
Salary/1000 is a reasonable approximation for any contractor (I have been out of contract for a total of 1 year out of last 3.8....)

Arghhhhhhhhh..........I give in.....are you in IT? Can you read a specification?


10 days...crikey...I wasn't even going to mention them but if that's close to average then perhaps I ought to.

P.S. Thanks for reply

[lukemg]

Don't forget the cost of having to get shot of people you don't need/want -VR/CR. Sick rates are often calculated at 10 days avg I think (that might be just public sector !)
Salary/1000 is a reasonable approximation for any contractor (I have been out of contract for a total of 1 year out of last 3.8....)