Rates and Factors Calculation
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QUICK & DIRTY RATES AND FACTORS ESTIMATES FOR SMALL BUSINESS ACTIVITIES Red Fill Means a Cell Contains a Calculation!
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Instructions and Comments
CALCULATE WORKING HRS PER YEAR
COMPENSATION PARAMETERS INPUT VALUE UNITS
a) Compensated Work Day (w/o Overtime) 8 Hrs
b) Compensated Work Days Per Week 5 Day Can be revised downward for part-time/partial year efforts or upwards for extensive overtime efforts.
c) Compensated Weeks Per Year 52 Wks
d) Compensated Holidays (Gvmt/Other) 10 Days 10 Federal holidays per year are allowable; Provide rationale for other compensated Holidays
e) Compensated Vacation and Personal Leave Days 20 Days For full-time work, 20 - 30 8-Hour Days are within Praxis guidelines
h) Total, Compensated Non-Work Days per Year 30 Days
i) Number of Compensated Work Hrs Per Year (a*b*c) 2080 Hrs
Less:
j) Compensated Non-Work Hours Per Year (a*h) 240 Hrs
k) Other Compensated Time 0 Provide Rationale for any other compensated time
Total, Direct Productive Person-Hrs (DPPH) (i-(j+k)) 1840 Hrs
CALCULATE 'RATES AND FACTORS' WITH COMBINED FRINGE/OVERHEAD RATE
Category $ or Hrs Rate % Total $'s
Base Hourly Rate $ 50.00 What you pay yourself per hour!
Compensated Hours Per Year 2,080
Annual Salary (based on Number of Working Hrs Per Year) $ 104,000.00
Direct Productive Person-Hours (DPPH) 1,840
Direct Labor Base (DPPH * Hrly Rate) $ 92,000.00 $ 92,000.00
Vacation and Personal Leave:
Vacation and Personal Leave (Hrs) 160 $ 8,000.00
Federal and Other Holiday Hrs 80 $ 4,000.00
Other Leave (Hrs) 0 $ -
Subtotal, Vacation and Personal Leave 240 $ 12,000.00 $ 12,000.00
Health & Welfare:
Health Insurance Premium - Monthly (Medical / Dental / Eye) $ 1,200.00 $ 14,400.00 Estimated costs
Other Insurance Premiums - Monthly $ 100.00 $ 1,200.00 Note that premiums on Excess Life Insurance (~$250K) are an unallowable cost.
Short - Term Disability (90 Days) Insurance Premium Per Month $ 300.00 $ 3,600.00 Note that this can be extremely expensive if you are over 50 yr-old!.
Subtotal, Health and Welfare $ 21,000.00 $ 21,000.00
Combined Fringes and Overhead Burdens:
401K/SEP (Corporate Match) 5.0% $ 5,200.00 Assumes a 4 - 7% Matching Rate as reasonable via Qualified Plan; FAR allows up to 15% as allowable.
Employer's FICA Match (CY07 - 6.2%; Max Wage/Tax is $97,500; $6045) 6.20% $ 6,045.00 6.2% to Max Rate - See http://www1.umn.edu/ohr/payroll/tax/wagelimits.html
Employer's Medicaid Match (1.45% with No Limit on Tax) 1.45% $ 1,508.00 1.45% - See http://www1.umn.edu/ohr/payroll/tax/wagelimits.html
FUTA (Fed Unemployment is 6.2% to $7,000 Max) 6.20% $ 6,448.00 6.2% to Max Rate - See http://workforcesecurity.doleta.gov/unemploy/uitaxtopic.asp
SUTA (State Unemployment in VA is 2.6% - 6.2% to 8000) 2.60% $ 2,704.00 Variable Tax Based on Actuals; See http://www.staffmarket.com/peo/pricing-suta.asp
General Office Space $ - $ - Assumes no office space required; May be reasonable to pro rate office rent for your home office (See your Accountant)
Computer Hardware (Annual) $ 1,500.00 $ 1,500.00 Annualized Amortization Expense (Assumed a 3 -yr life on the Asset)
Computer SW (Annual License Expense) $ 1,000.00 $ 1,000.00 Assume an Annual Expense on S/W Licenses (No Amortization)
Other $ - $ - Assume an Annual Expense
Cell Phone (Business Use) $ 125.00 $ 1,500.00 Monthly Expense * 12 = Annualized Expense
Office and Misc. Business Supplies $ 75.00 $ 900.00 Monthly Expense * 12 = Annualized Expense
Other $ - $ - Monthly Expense * 12 = Annualized Expense
Other $ - $ - Monthly Expense * 12 = Annualized Expense
May be applicable - See your Accountant; Praxis recommends reimbursing business travel/automobile at the applicable
Depreciation, Various Assets $ - $ -
IRS mileage Rates.
Subtotal $ 26,805.00 $ 26,805.00
Subtotal, All Fringe Benefits, Overheads, and Burdens $ 59,805.00
Subtotal, Direct/Indirect Costs $151,805.00
Combined Fringes and Overhead/Burden Rate on Direct Costs ######
General & Administration G&A Expenses:
Accounting/Legal Fees (State/Federal Taxes, and Incurred Cost Submissions) $ 1,500.00 $ 1,500.00 Estimated Cost for Ann'l Accounting and Legal Fees
Business and Professional Occupation Licenses (BPOL) and Taxes $ 0.30 $ 312.00 Dependent on State - Assumed $0.30 per $100 of Annual Sales for VA
Administrative Hours Per Month (Non-Billable Expenses) 2.0 $ 100.00 Assumed 8 hrs a month of Compensated (but non-billable) time; ignored fringes on this amount for simplicity
Payroll expenses (checking/Invoicing) $ 100.00 $ 1,200.00 Estimated Ann'l Cost of Accountant/Bookkeeper
Other $ - $ - Estimated Ann'l Cost
Bid & Proposal (B&P) Hours Per Year (Non-Billable Expenses) 8.0 $ 400.00 Assumed 16 hrs per year of Compensated (but non-billable) time; ignored fringes on this amount for simplicity
Other $ - $ - Estimated Ann'l Cost
Other $ - $ - Estimated Ann'l Cost
Total, G&A Costs $ 3,512.00 $ 3,512.00
Subtotal, Cost Thru G&A $155,317.00
G&A (Per Cent) 2.31%
Fee 6.90% $ 10,716.87 Praxis Guidelines are 5 - 9% Fee (Profit) for Time & Material (T&M) Contracts
Annualized Cost to the Client (Billing Rate * DPPH) $166,033.87
Hourly Billing (Sell) Rate $ 90.24
Multiplier 180%
Rates and Factors Estimator
Version 1.0 - 4/29/07 Page 1 411b0567-660d-46ec-bbc3-f9d4ff20fd25.xls