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Billing Rates

Curious as to what type of a formula is used to compute billing rates. What are some of you doing? How frequently do you adjust? Currently, we calculate actual payroll costs, add a factor for overhead and multiply x 2.

Thanks,

Pamela A. Brosch, CPA Chief Financial Officer HSR Business to Business

We use payroll actual cost + insurance cost + payroll tax and multiply x 3. We usually adjust once a year.

Ed Miller Business Manager Grafica, Inc.

We calculate actual annual expenses per employee, which includes: gross salary, actual tax expense (FUTA, FICA, & State Unemployment), and actual insurance expenses (health insurance and worker's comp). Then I divide that total by 2080 hours per year (40 hours per week) to get an hourly employee cost. Then I triple that to get that person's hourly billing rate.

We do all of our billing by a staff billing rate, not a task rate.

Catherine Colangelo Business Manager The Phillips Agency

we are also currently trying to work up a "burdened" cost rate salary + overhead allocation

Greg Weir Bravo Zulu

We use the same method but divide by 1950 hours per year, 37.5 hours.

Ed Miller Business Manager Grafica, Inc.

I'm wondering if the billing rate that we charge for retouching is in line with others in the industry.

We charge $150/hour. What do other Design firms charge?

Johnathan