Vgroup INC

Rate Calculation

created by :- Yogesh Pandey IT Recruiter

Agenda:

OH (Non productive and productive)Benefits: health….Paid leaves Summary of the Rate calculationSummary of the Cost calculation

Considerable factors:

Over head :-Overhead expenses are those production and

nonproduction costs not readily traceable to specific jobs or processes. Overhead expenses encompass three general areas: indirect materials, indirect labor, and all other miscellaneous production expenses, such as taxes, Insurance, depreciation, supplies, utilities, and repairs.

Therefore, overhead expense is part of the total costs of maintaining and staffing a business.

OH / Production Overhead :

Production overhead includes such items as factory supplies and materials that are used in the production process, supervisors' salaries, maintenance and repairs of machinery, and utilities.

Nonproduction overhead:- Nonproduction overhead includes salaries

of Building Material , medical, and security personnel, rent or depreciation on plant and equipment, insurance on plant and equipment, the costs of meeting government regulations, and administrative salaries and expenses.

Medical Benefits(Single Benifit):

V Group always provides an option of medical benefits for the candidates getting submitted on W2 tax term to the client portal.

V Group pays up to 20 % of the Health Insurance premiums for a Single Employee and also is subjected to pay 75 USD per month whichever amongst these two is less.

If in case the candidate wants to enroll himself for additional health insurance for his/her family or for any kind of dental insurance, then the additional premiums will also be deducted from the salary of the employee itself.

Paid leave benefits:

Paid leave benefits are an important benefit provided to employees for planned vacation and illness and can be critical to maintaining productivity and employee morale.

However, the capture and management of paid leave benefits is an area which is typically poorly managed across companies of all sizes, leading to a significant portion of paid leave absences used but not reported or recorded.

Rate Calculator ( Vgroup Inc )

Summary of rate calculator:-

Vendor Rate : 62.50/hrMinimum V Group Margin : 7.5Corporation to Corp (C2C) : 60.50- 7.5 (Vgroup Margin) - $ 55/hrW2 Without Benefit - $47.83/hrW2 H1B Candidate - $45.22/hrW2 With Single Benefit - $47.39/hrW2 H1B With Benefits – $44.78/hr Annual Salary: $85,087

People click Rate:

People click rate or Vendor rate is the rate that is finalized by the client end for any certain position.

Vendor rate is the maximum pay rate, which the client offers to us, while deciding the rates they keeping in mind some important factors such as:

Key skills of the requirement.Number of years of expertise required.Location of Job opening.Timespan of project etc.

VGROUP MARGIN:

Vgroup is providing resources to the clients of various state keeping the minimum margin of $7.5/hr.

An recruiter needs to keep the margin of atleast $7.5/hr for company ,however he is also responsible to mazimize this margin as much as possible so as to generate higher revenue for the company.

Corporation to corporation:

Corp-to-Corp means that client, a corporation, pays our business, which is organized as a corportation, for the services rendered by us.

In terms of rate calculation keeping Corp to Corp in mind we need to include Vgroup margin as well.

We reduce minimum $7.5/hr from the people click rate (Vendor rate)which leads to the actual corp to corp rate that has to be discussed while confirming the rates with any employer.

W2 Without Benefits:

In this scenerio company will automatically withhold and pay all of the necessary employee income taxes. These taxes include: Federal Income Tax, State Income Tax, and FICA (Social Security and Medicare).

This is a W2 rate without any benefits for a non H1B candidate ,usually given to USC candidates or Green card holders.

W2 H1B Candidate:

This is a W2 rate without any benefits given to the H1B candidates.

It means candidate is not supposed to use or enroll himself for additional health insurance for his/her family or for any kind of dental insurance

W2 With Single Benefit:

This is a W2 rate with single benefit which has been covered as per the company policy for non-H1B candidate.

Single benefit would be the medical benefit given to the non-H1B candidate as per the compliance set by the Vgroup.

W2 H1B With Benefits:

This is a W2 rate with single benefit which has been covered as per the company policy for H1B candidate.

V group Example (cost calculation):-

Lets take an example for an Annual salary 100,000 per year – Annual salaryThis yearly salary including :2 weeks (10 days) paid vacation3 sick daysPaid State holidays Single medical benefit (covered as per

company policy)

Annual salary cost Calculation:- Total hours in the year 2080 hours (8 hours per

day) Vacations (10 days x 8 hours) - 80 hours Paid holidays (10 days x 8 hours) - 80 hours Sick days (3 days x 8 hours) - 20 hours Total worked hours in the year 1900 hours (billable

hours)

Salary of 100,000 per calendar year At 15% OH – Cost to company is $115, 000 per year

($100,000 x 15%)

Final Cost per hour $115, 000 : 1900 hours = $60.50 per hour

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