How much overhead does a company pay on an employee?

Question

I'm leaving my job to go freelance soon. One of my main customers is my current employer. I'll be working fewer hours, but want my hourly rate to increase since I'll be paying my own taxes/benefits/retirement. I don't want to go overboard on the new rate quote, but is there a quick way that I could figure my total cost to the company as a salaried employee including retirement/benefits?

Basically I'm trying to figure how much can I get away with charging for an hourly rate and have support for my argument?

Thanks in advance.

Answer 1

Hi Burke,

not knowing the type of employment you're leaving this will have to be general.  First off, how much are you currently making at your soon be "ex-job"?  There should be something on your pay stub showing any deductions for retirement and so forth.  You should also be able to figure your pay per hour/job as well.  If that info isn't on your pay stub then contact your HR (human resources) dept. and fid out.

Also knowing what the competitive pay rate for your field is might help as well.  You should be able to find that online with your states Bureau of Labor and Statistics ( http://www.bls.gov/oes/current/oessrcst.... ).

Good luck freelancing!