"john williams" <[log in to unmask]> wrote:
> In other words, what is the going rate for a HP 3000 Analyst/Programmer ?

To avoid trying to compare apples and oranges, note that there are several
details that need to be specified when talking about rates.

Are you a self-employed, totally independent contractor working directly for
the customer, where you bill the customer for your hours (and possibly
expenses), and then hope for a check in the mail?  At the end of the year
they report your pay to the IRS on a 1099.  (Pardon me for being
US-centric.)  You make estimated tax payments using Form 1040-ES.  When you
file your tax return you report your income on Schedule C and pay
self-employment tax on schedule SE.  The customer isn't withholding tax and
isn't providing any benefits.  You're not covered by Workers' Compensation
or Unemployment Insurance.  You may want to carry business insurance,
incorporate as a LLC, etc., in order to limit your liability if something
goes wrong.  On the other hand, you may be able to deduct expenses that an
employee can't deduct.

Or are you an employee?  You're on somebody's payroll.  Your employer is
withholding income tax and paying employer taxes (e.g., their share of
Medicare and Social Security, plus Unemployment and Workers' Comp premiums).
They report your earnings to the IRS on a W-2.  You may or may not receive
benefits like health coverage, paid holidays, sick time, etc.  As an
employee, you have certain legal rights that you might not have as a
contractor.

If you're an employee, are you an employee of the customer for whom you are
doing the work, or is there a third party serving as your "employer of
record"?  In such a case, the third party is going to take their cut of the
pay.  If you deal with a third party, you may find them very open about just
how much of a cut they are taking;  with others it is a closely guarded
secret, and they will not tell you how much they are billing the customer
for your services, or tell the customer how little they are passing on to
you.

Bottom line:  If somebody tells you they're getting, say, $50/hour, you
really need to know whether that's as an employee or an independent
contractor.  If it's as an employee, you need to know what benefits are
being provided.

Walter

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