I wish to ask HBA members a question about being an "independent contractor" as opposed to being a company employee. I know we have some people with far more extensive business and corporate experience here than I. This is absolutely related to aviation... it directly affects the amount of avgas I can buy 
Short version: What is the accepted or expected difference between what you would make as an hourly salary if you were an employee with full benefits (health, 401K, disability, workmen's comp, vacation, etc.) versus the amount you would charge the same company if they wanted you to be an independent contractor with no benefits? Woulud you multiply the hourly "employee/benefits" salary by 1.4, 1.6, 2.0, 1.15 to arrive at an equivalent contracting rate????
Back Story: After two interviews, a company was about to extend an offer of full time employment to me at a salary of X dollars per year with full benefits. At the last minute they did an abrupt turnaround (for two or three different reasons) and said they would not extend a formal offer to be an employee, but they were interested in having me come aboard as a contractor on a temporary but open-ended basis. "Please send us your contracting rates..." . So I did a few hours of internet research and found that the "real" or "actual cost" of having a full time employee was frequently quoted as something approaching twice the base pay, once you factored in benefits, health insurance, worker's comp, vacation, administrative, etc. I also found an online calculator for independent contractors, where you could see and compare the "real world" actual cost of hiring an employee and contracting the same job function to a freelancer. I sent this company an e-mail saying that my no-benefits outside contracting rate would be 1.45 times the hourly rate that they would have paid me as an employee with benefits.
They freaked out and said "that number is outside the range we discussed... thank you for your time".
Was my thinking off? Any of you guys and gals who are independent contractors for corporations: what percentage above the hourly employee/benefit salary do you ask for when contracting for a position with no benefits?????
Short version: What is the accepted or expected difference between what you would make as an hourly salary if you were an employee with full benefits (health, 401K, disability, workmen's comp, vacation, etc.) versus the amount you would charge the same company if they wanted you to be an independent contractor with no benefits? Woulud you multiply the hourly "employee/benefits" salary by 1.4, 1.6, 2.0, 1.15 to arrive at an equivalent contracting rate????
Back Story: After two interviews, a company was about to extend an offer of full time employment to me at a salary of X dollars per year with full benefits. At the last minute they did an abrupt turnaround (for two or three different reasons) and said they would not extend a formal offer to be an employee, but they were interested in having me come aboard as a contractor on a temporary but open-ended basis. "Please send us your contracting rates..." . So I did a few hours of internet research and found that the "real" or "actual cost" of having a full time employee was frequently quoted as something approaching twice the base pay, once you factored in benefits, health insurance, worker's comp, vacation, administrative, etc. I also found an online calculator for independent contractors, where you could see and compare the "real world" actual cost of hiring an employee and contracting the same job function to a freelancer. I sent this company an e-mail saying that my no-benefits outside contracting rate would be 1.45 times the hourly rate that they would have paid me as an employee with benefits.
They freaked out and said "that number is outside the range we discussed... thank you for your time".
Was my thinking off? Any of you guys and gals who are independent contractors for corporations: what percentage above the hourly employee/benefit salary do you ask for when contracting for a position with no benefits?????
