1. What is the Contract To Permanent Calculator?

The Contract To Permanent Calculator estimates annual permanent salary based on contract hourly rate and estimated taxes. It helps contractors understand their equivalent permanent employment compensation.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Contract Rate — Hourly contract rate in dollars
• 2080 — Standard full-time work hours per year (40 hours/week × 52 weeks)
• Taxes — Estimated annual tax amount in dollars

Explanation: This calculation converts an hourly contract rate to an equivalent annual permanent salary while accounting for tax differences.

3. Importance of Permanent Salary Calculation

Details: Understanding the equivalent permanent salary helps contractors make informed decisions about job offers and compare contract vs permanent employment options accurately.

4. Using the Calculator

Tips: Enter your current contract hourly rate and estimated annual tax amount. The calculator will provide your equivalent permanent salary.

5. Frequently Asked Questions (FAQ)

Q1: Why use 2080 hours for the calculation?
A: 2080 represents standard full-time work hours per year (40 hours/week × 52 weeks), which is the basis for most permanent salary calculations.

Q2: What taxes should I include?
A: Include all estimated annual taxes including income tax, social security, Medicare, and any other applicable taxes for your situation.

Q3: Does this account for benefits differences?
A: This calculation focuses on base salary conversion. Additional benefits like health insurance, retirement contributions, and paid time off should be considered separately.

Q4: Is this calculation accurate for all contract types?
A: This provides a general estimate. Actual conversions may vary based on specific contract terms, overtime, and other compensation factors.

Q5: Should I use gross or net amounts?
A: Use gross contract rate and estimated gross tax amounts for the most accurate comparison between contract and permanent compensation.