[quote=dumbrenter]I pay IT consultants for their services and always thought their rates are too high for what they do.[/quote]
Their rates seem high because:
* They pay DOUBLE SS/MDCR tax
* They pay for their own health insurance
* They pay for their own life insurance
* They don’t get 401K matching from you
* They don’t get any bonuses
* They don’t get a yearly raise
* They don’t get paid vacation
* You can get rid of them at anytime, and they may be unemployed for a period of time with no income
* They have a lot more paperwork and taxes to deal with at the end of the year.
With consultants you are paying for the convenience factor. My experience is that most of them do not make any more money than your typical 9-to-5 employee at the end of the day and many make less.
