RE: CISA Contractor Rates?

[chuck.bianco () ots treas gov]

My original thoughts deal only with someone who contracts his services.  If
you are starting up your own company, that is a different thing which
substantially more risks and substantially more potential benefits (long
term).  I only based my thoughts on what I received as a contractor.  If
someone charges more or charges less, that is a personal decision.  Most
good companies pay at least 33% in benefits.  You also have to file
quarterly tax statements.  Most people also forget to save FICA (your amount
and the employer's amount), so the double your salary was just "make whole"
amount.  In addition, you only get paid for the hours you work, so time off
for doctor's and dental appointments, sick leave, getting your car serviced,
etc., come directly out of your pocket.  

To each his own.  No sense keeping a thread like this going because there is
no right answer.  Every one decides what is best for him or herself.

Thanks

My opinion and not that of any government agency.

Chuck Bianco IT Examinations Manager
CISSP, CISA, FITR
(972) 277-9574
chuck.bianco () ots treas gov


-----Original Message-----
From: Ong, Kevin [mailto:kong () star-systems com]
Sent: Wednesday, January 15, 2003 8:30 AM
To: 'chuck.bianco () ots treas gov'; tony572000 () hotmail com;
CISACA-L () purdue edu; SECURITY-BASICS () SECURITYFOCUS COM
Subject: RE: CISA Contractor Rates?


I understand the inclusion of what you currently receives as employee
benefits, but what is the reasoning for doubling the total amount? It seems
to me that you want to know what your break even point is and compare it to
the offered rate, considering the risks of going out on your own. I think it
is very important that you compare the offered rate to approximately what
you are getting currently as an employee.  Depending on your situation, you
might want to add to your base pay employer/employee FICA, medical/dental
insurance, paid vacation/holidays, employer 401K matching, value of stock
options, short/long term disability insurance, professional dues/training,
and anything you can think of that you're getting now but will not get when
you go solo. Another thing I'll be concerned about is what will happen after
the first project?  Are you going to left out in the cold or are there some
certainty that future projects will follow?

-----Original Message-----
From: chuck.bianco () ots treas gov [mailto:chuck.bianco () ots treas gov] 
Sent: Tuesday, January 14, 2003 10:24 PM
To: tony572000 () hotmail com; CISACA-L () purdue edu;
SECURITY-BASICS () SECURITYFOCUS COM
Subject: RE: CISA Contractor Rates?


Depends on your experience and your talent.

A rule of thumb I use is to add 33% (non-taxable benefit amount) and double
it.  Then divide that result by 2080 (number of yearly hours in 52 weeks.
You will have to pay your own benefits and all of the FICA.  I wouldn't work
for less than that unless I was unemployed.

Make sure you remember to file a quarterly tax statement and pay an
estimated tax and to save the entire FICA.  Also pay your income tax early
to avoid penalty for underpayment if you do not file the required estimated
quarterly tax forms.

My opinions only and not that of any government agency. 

Chuck Bianco IT Examinations Manager
CISSP, CISA, FITR
(972) 277-9574
chuck.bianco () ots treas gov


-----Original Message-----
From: Tony Toni [mailto:tony572000 () hotmail com]
Sent: Tuesday, January 14, 2003 8:26 PM
To: CISACA-L () purdue edu; SECURITY-BASICS () SECURITYFOCUS COM
Subject: CISA Contractor Rates?


Hi,

Does anyone know what the hourly contract rate is for a Sr. IT Auditor with 
15+ years experience?  I have had some agencies call me and ask me if I 
15+ want

to work as an Sr. IT Auditor for about $50 an hour on short term contracts 
(i.e. about 6 months).   Is this a good rate or am I being low balled?   
What rate do IT Security Consultants with a CISSP get?...seems to me I 
should get about the same.  Anybody know of any web sites that list contract

rates for security or audit people?

Please note that I am not asking how much a client companies pays...because 
I know that an agency gets about 30-50% cut.  I am asking what is the hourly

amount that would go into my pocket.

Tony CIA,CISA,CDP,MBA
Security and Audit Services
Nations Banking & Trust




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