Normally, your salary is 1/3 your billable rate (for most industries). So approx $55/hr
1/3 goes to salary, 1/3 goes to overhead and 1/3 goes to profit. Overhead includes the hours you are not getting billed out (paperwork, internal work, etc.) and also fixed costs for the company (office, vacation, sick, PTO). Profit normally goes to the owner and retained earnings (savings for a rainy day for the company)
1/3 goes to salary, 1/3 goes to overhead and 1/3 goes to profit. Overhead includes the hours you are not getting billed out (paperwork, internal work, etc.) and also fixed costs for the company (office, vacation, sick, PTO). Profit normally goes to the owner and retained earnings (savings for a rainy day for the company)