#HOURLY PAY FOR 80000 A YEAR UPDATE#

(Full-time salary + burden) / 2,080 = contract hourly rate Calculate Your Pay If an employee makes $80,000, the hourly rate is $38.46 per hour.įor a long-term contract on 1099 status, the calculations are a little different. For a long-term contract on W-2 status with a workweek of 40 hours, the calculations go as follows:įull-time annual salary / 2,080 = contract hourly rate The exact equation they use depends on the type of tax form they have, either W-2 or 1099. Workers can determine their hourly rates with two approaches. Now that we’ve covered the basics, let’s move on to the good stuff. You can find the number of hours worked by doing this simple math:ĥ2 weeks in a year x 40 hours per week = 2,080 hours This figure represents the number of hours a worker is paid in a calendar year. Ultimately, to calculate how much you should ask for during a job interview for a contract position you just need one number. A burden could contain payroll, taxes, unemployment and other related costs. A W-2 is intended for employees, while a 1099 is the document necessary for independent contractors.Ī common word we use in the recruiting world is ‘burden,’ which refers to the cost a company incurs to employ a person. The main distinguishing factor is whom these documents are meant for. Both documents help you determine the amount of income taxes you’ll pay. If you’ve worked in an hourly position, you might be familiar with some, if not all, of these terms, as they are common expressions used in contract work.įirst, let’s get into the differences between a W-2 and a 1099 form. Running Through the Basicsīefore reviewing the exact formula that recruiters and businesses use when working with contract and freelance workers, ensure you have the basic information needed. Understanding this formula can help you adjust your financial perceptions, so you know exactly what to ask for when you step into the job interview. There’s a simple formula that companies use to calculate freelance and contract worker s’ hourly rates.

But when it comes to your earnings, it pays to be strategic and precise. An educated guess might suffice in certain financial transactions in your life. You don’t want to present a lowball offer but asking for too large a sum can ruin your chances of securing the job. However, there’s one tricky part of the interview process for those interested in contract or freelance opportunities: figuring out how much money you should ask for. You might feel empowered to grow in your line of work and build up experience that can propel you further in your career. There’s the anticipation of change - a new office, a different set of responsibilities and a new team. Interviewing for a new job can be exciting.

#HOURLY PAY FOR 80000 A YEAR UPDATE#

An update to the original article written.

Hourly pay for 80000 a year