With PD Payments, How Can I Increase My Company's Profits?

FAQs

Q1. With PD payments, how can I increase my company's profits?
 A: Let us say your company's billing rate is $100/hr, my rate is $80/hr, your firm's sales cost is $8.88/hr, I work on W-2 and for your city, Boston, the IRS allows a maximum PD of $238 per day. Your firm has the option of breaking out OR not breaking out of my $80/hr rate, a PD of ($238/day x 7 days) / 40 hrs = $41.65/hr.

• If your firm pays no PD, on my work your firm will make only ($100/hr - 80/hr - $8.88/hr - 6.12/hr FICA) = $5.00/hr.
  
  
• Alternatively, if your firm breaks out of my $80/hr rate the PD of $41.65/hr, then on my work your firm will be able to make ($100/hr - 80/hr - $8.88/hr - 6.12/hr FICA + 3.19/hr FICA) = $8.19/hr. The key is the $41.65 x 7.65% = $3.19/hr FICA that you will save on the PD of $41.65/hr. This means that your firm will be able to make an additional profit of $3.19/hr!! Or, to put it differently, your firm will be able to increase its profits by a whopping ($8.19 - 5.00) / 5.00 = 63.8 per cent!! (21-A28)

Q2. How can I contact you?
 A: Give me a call or send me e-mail.

• E-mail: click here

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Copyright �1998-2003 by Rob Davis, P.E.
http://www.robdavispe.com | http://www.softwaretestengineer.com
Rob Davis is a registered and licensed professional engineer.
Rob specializes in Software QA / Verification / Validation / Testing.