Sammy Bill wrote:Hello,
I m planning to switch from Employee to a contractor with the same Company doing the same job.
I m switching so I can get H1B through a consulting company as my employer is not ready to sponsor now.
I have 2 years of experience ( most of it with my current employer )
What should I consider when switching from employee to consultant?
How should I calculate my hourly rate? if I make 50K/year + bonus + tuition reimbursement and other benefits, how much should I ask for contracting?
What other things I should consider when doing the switch....
Please advice.
Remember that it is extremely difficult getting H1B and extensions getting approved these days for consulting companies. So even if you think a consulting company will sponsor you, there is no guarantee that it will be approved.
There are many different models on which consulting companies operate. For example, 90/10, 80/20, 70/30, or fixed salary. Overall, if you are on H1B, everything will work out to about the same for you. Your biggest worry in not the rate. It is H1B. If you get that sorted out, everything else will fall in place
Even so, 50K/Yr will be about 30$/Hr, assuming 2000 hrs/yr and about 10K in benefits. But again, you can't really work on hourly basis on H1B. You have to be a full time employee. The company has to run payroll for you. Hence, the different models.