How To Realistically Set Your Fees - Part 3
Effect of BenefitsWe have previously examined realistic billable hours and the effect of business expenses on your hourly rate. Now we'll look at the effect of benefits.Once upon at time, when we were employed, we received a benefits package from our employer. This usually included health, life and disability insurance. Many firms also had available pension programs, profit sharing, dental and vision coverage. In addition, one-half of your social security was paid by your employer.As self-employed individuals, we have to provide these benefits for ourselves.
This means an additional boast to the hourly rate we've calculated so far. For the sake of argument, let's figure a standard benefits package consisting of health, life, disability, pension and profit sharing. Let's figure health insurance costs at $300 per month; life at $50 per month; disability at $150 per month; pension (a SEP-IRA) at $500 per month and about 10% for a profit margin.If we total these up we get a yearly figure of $12,000. Now keep in mind, that most of these will be paid for in after tax dollars. So, we need to add approximately an additional 30% to this number, for a true total of about $15,600 per year.
The 30% represents the amount of taxes you need to pay to end up with the net amount of money needed to pay for your benefits package. Keep in mind that I chose 30% as a completely arbitrary number. Your own tax situation may be higher or lower.How does this effect our hourly rate, let's see. Last article we left off at $56 per hour. This represented a yearly salary of $42,000 plus annual business expenses of $15,000.
If we take the $15,600 in benefit costs and divide by our billable hours of 1100 per year, we get approximately $14 per hour. This brings our total hourly rate to $70 per hour.Now, we need to factor in our profit sharing percentage. Once again, I choose 10% as a representative number. Your targeted profit could be higher or lower. If you take your $70 per hour rate, multiply by 10%, you end up with $7 per hour.
Your total hourly rate comes to $77 per hour.This is the amount you need to charge to cover all we discussed so far. Compare this to the approximately $20 per hour you would need to get paid by an employer to earn our hypothetical $42,000 per year. And yes, I know today many employers require a co-payment on their benefits package. I stated it this way for simplicity sake.So, you need to charge almost 4 times what you would earn in salary to end up at the same place. Don't be discouraged, there are many people out there that are charging a lot more than this and getting all the business they can handle.
Remember, these numbers are hypothetical, your situation may be much different. Copyright 2000, DeFiore Enterprises..
OmniMD Electronic Medical Record (EMR) Software Integrates Modules & Services
Tarrytown(NY)?Oct 11, 2006-- OmniMD, a developer of HIPAA compliant EMR(electronic medical record) solutions has launched its new release, with wealth of new features, modules and services making it one of the most comprehensive integrated EMR and practice management solutions in the marketplace.
"Our primary focus in the new EMR release has been to eliminate bottlenecks in the clinical workflow and information management." said Divan Da've, CEO of OmniMD.
The new EMR release is based on input from the present users of the system who consistently stress the need to create a common platform for the work processes of the medical office. "Our aim is to make OmniMD's complete suite of products a one-stop solution for the practice and the physician." said Mr. Da've
OmniMD Integrated Electronic Medical Record and Practice Management system is a broad solution for a medical practice combining in a common package all of the most important...
Insurance > OmniMD Electronic Medical Record (EMR) Software Integrates Modules & Services
7 Out of 10 People Do Not Have What We Offer, and We?ve Become the Undisputed Leader in Less Than 10 Years
We have no products for you to purchase and try to resell to somebody else. What we market is a package of 4 Great Health Benefits, Dental, Vision, Prescription, or Chiropractic. It's called AmeriPlan?, the largest provider of heathcare discount benefits in the US. All I do is tell people about this incredible savings card (and everyone loves it!), get them enrolled online, and AmeriPlan? pays me both an advanced commission and ongoing residual paychecks for each membership. They have an unbelievable 90+% retention rate for members, so every day I get to build, not RE-build my organization!
We save people up to 80% off of these health benefits, with no waiting period, no limit, no deductibles, and we cover all pre-existing conditions.
We packaged all 4 benefits together and market it for less than $20 per month and that covers everyone in the entire household, even if some in the household are not related.
You can see why and how we have over 1 million people...
Insurance > 7 Out of 10 People Do Not Have What We Offer, and We?ve Become the Undisputed Leader in Less Than 10 Years
HOW DO YOU PROTECT YOUR BUSINESS AGAINST THE LOSS OF A KEY EMPLOYEE
Key people are vital to your business. The loss of one or more of your key employees can cause disastrous problems. Sales may be lost. Credit can become more difficult to obtain. Profits may shrink, momentum may be lost, and training a replacement will cost you time and money.
Life insurance on key employees can provide a business with a cushion to absorb the shock of such a loss. Most astute business owners insure physical assets from destruction. But when it comes to a business owner's most valuable assets?key employees?many forget to take the same precautions.To protect your business you might consider an insurance policy that protects a business when an essential employee dies. The employer pays premiums for an insurance policy on the key employee's life. The employer is the owner and beneficiary.
At the key employee's death, the employer receives the policy's tax-free death benefit.*During the life of the key employee, cash values accumulate tax-deferred free every...
HOW DO YOU PROTECT YOUR BUSINESS AGAINST THE LOSS OF A KEY EMPLOYEE
Insurance > HOW DO YOU PROTECT YOUR BUSINESS AGAINST THE LOSS OF A KEY EMPLOYEE
Insurance How To Realistically Set Your Fees - Part 3 term life insurance
Insurance skirts How To Realistically Set Your Fees - Part 3
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