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I'm the Voice In Your Head... You never know what's next!!

Kat Aylward Collins

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vidya shakerwrote:
Best wishes for a very Happy New Year, sweetie!!!! May this year bring all your hopes and wishes true!
 
XOXO,
 
Diya
Dec. 31
May 19

HOW TO: Set A Contracting Rate

I have been asked a number of times recently by people moving from being an FTE to new Contracting gigs how I come up with a Contracting Rate.   I decided to write down my process.  This has been fine tuned over 20 year of contracting, and works pretty well. 
 
I figure there are 2080 working hours in a normal year (2088 in a Leap year but I just use 2080)
  1. exclude 320 hours a year for "vacations, sick leave, holidays, and other days you are not working due to kid stuff and mental health days"
  2. exclude 320 hours a year for "training, education, testing new stuff in the home lab, etc"
  3. exclude 320 hours a year for "job hunting, interview time, networking, etc"
  4. exclude 320 hours a year for "just plain I can't find any kind of work time"
Now you have 1000 hours left in the year that you will actually "work".   
  
I normally worked as a W2 worker so that the contracting agency took care of paying my taxes, worker's comp, and other stuff that can impact you later (like unemployment insurance).   This is a VERY good thing!!  (you will see why later...)
  
Figure out how much you need to make in a year to pay your bills as your low end number.
  
I usually started with a Gross Income number because I knew what my previous income was and I could figure a percentage of what I needed to pay bills. So...
  • Gross income of 60,000/yr equals $60/hr W2
  • Takehome income of 60,000/yr equals $85-90/hr W2 because the agency will take about 25-30% for taxes etc.
The good thing about doing it this way is that if you work more than 1000 hours in a calendar year, you are good to go.  You have figured out what you NEED to pay the bills, and anything else I think of as a Bonus.  In the Bay Area, I usually could get between 60-65/hour W2 as a Project Manager, and about the same for an Exchange Engineer.
  
Always quote a higher rate for a shorter contract and you can go lower on a longer contract.  If they offer you a 12 month contract, and you dont have to worry about these two time blocks, you can ask for a slightly lower rate:
  • exclude 320 hours a year for "job hunting, interview time, networking, etc"
  • exclude 320 hours a year for "just plain I can't find any kind of work time"
In this case, I might ask for 65 and drop to a 59 rate as a "goodwill gesture" to the agency.  They can sometimes give you an idea of what the client is willing to pay, and I usually know up front if it is a rate I could work with. 
  
If you are going 1099, all this changes...  I then usually tack on 40% onto the W2 rate, so if it was a 60/W2, it would be $100 on a 1099 contract.  You are then responsible for paying all your taxes and you HAVE to make sure you are working with an accountant to make sure you are holding enough $ aside during the year.  I didnt like 1099 because with all that $ coming in, I paid off a lot of bills and had to come up with the tax money the following April.  I will never do that again without an accountant telling me what to make payments on during the year.   This is why I now go only W2 for contracts.
 
I hope this helps those of you looking for work in this rough job market - Contracting is a very viable alternative, and can help cover expenses while you look for that next "right fit".
March 17

HAPPY ST. PATRICK'S DAY, EVERYONE!!

Just want to wish all my friends and family a Happy St. Patrick's Day! 
 
 
 
March 03

BathTime!!!

http://www.youtube.com/watch?v=o_Cz1JDV8Ig
 
In case anyone wants to know how dangerous bath times can be… make sure you put a towel down!!!!! No slip and falls here.   Behind the camera we have my daughter Jeannea and the star of our show is my 6 month old grandson, Isac Jr.!!
 
Have a great day
February 12

Extreme Home Makeover - Month 3

We are coming down to the end of the project and are expected to be finished by the end of February or the beginning of March.  The cabinets, counters and the laminate tile flooring is now down in the kitchen and all the walls and exterior are painted, including all of the bedrooms and bathrooms (one bedroom and bath were painted last year, the rest were done last weekend before they stripped the floors!!). James has been living at the house throughout the construction but had to move all of his stuff out so the floors could be sanded and refinished througout the house, which started Tuesday of this week.  As of yesterday, they had put down the first coat of polyurethane after sanding away the old finish and blending in the new oak flooring that was needed for the extension of the living room.  There is also a new heating system with connectivity for an AC in the future, and all of the electrical has been redone as well.  Lighting is in (lots of can lights, as well as hanging pendants in the kitchen and a ceiling fan for the living room) and there are switches galore to turn things on and off - hopefully I can figure out what goes to where!!   Also, they will be building steps from the french doors to the backyard, but James and a buddy are supposed to build a deck... a nice deck for lounging and spending summer nights !!!  We will also be restructuring the back lawn, making a small garden down the side of the house and removing the grass and redoing the watering system.  The deck and garden will mean less lawn to water and maintain... but my gardener handles all that so no biggie!!
 
As for furniture... I have a couch, a loveseat and not much else to go into the living room.  I have a futon for the music room (a combo guest room/hangout room to play music) and my bedroom furniture as well... I am not moving in anything else unless I love it or absolutely NEED it...  I plan to get a sofa table for behind the couch and loveseat, with storage for books and other things. IKEA had one that I really liked that was really reasonable.  I also have to get a large area rug for the living room, but it will have to be bigger than the one I previously had because the room is so much bigger!!  I will eventually need a dining table that can seat 6-10, and chairs to go with... and a small desk area for the kitchen for mail and bill paying.  It is all a work in process but once it is all there, I plan to have an Open House to celebrate (probably this summer).  Stay Tuned for the Final Chapter and updated photos!!
January 15

Extreme Home Makeover - Month 2

Wow - the time sure has flown by.  We started this renovation mid-November, and now we are in mid-January.  We are moving into month 3 of work, and the improvements are tremendous!!  As I mentioned, we literally tore everything out down to the studs in the public part of the house, and have moved the kitchen from near the front door to the backside of the public space.  That allowed us to widen the front entry hall, move the coat closet, open up the living room and kitchen/dining area for much better flow.  I am now so looking forward to cooking and entertaining in that space.  I have already been told that I am hosting Thanksgiving next year.... Guess I should go learn how to cook, huh? 
 
We are refinishing all of th hardwood in the house, so we still have to move some remaining stuff out for the sanding and refinishing period.  They will match the current red oak with the new interspliced red oak, and will get it all looking the same color.  It should be wonderful!!
 
The construction is estimated to go thru the end of February, and then I can start moving in only the items I want in the house.  Much has already gone to charity, and I am sure that more will go.  I want to start fresh and clean and uncluttered in this space.  If I don't love something, it doesn't make the cut!!!