IT CONTRACTOR RATE GUIDEThe New York Metro IT Market

NEW YORK METROIT CONTRACTOR RATE GUIDE

2www.donmor.com

Before diving into a discussion of current IT contractor

rates, it’s crucial to get a feel for the state of the current

tech market in the New York region. While this is a

very high level overview, it is nonetheless immediately

clear why many companies are getting so competitive

when it comes to hiring tech talent, and why so many

tech professionals and companies alike are beginning to

more fully embrace the growing trend towards contract-

based employment.

NEW YORK METROIT CONTRACTOR RATE GUIDE

3 www.donmor.com

A long-standing global powerhouse in a number of sectors, most notably finance,

media, and commerce, the State of New York is clearly no stranger to the

spotlight. New York City itself, serving as an anchor to the entire state, is the

most populous city in the US, a bustling hub of activity and innovation.

The state’s unemployment rate has been dropping rapidly, landing most recently

at 5.7%, the lowest since August of 20081

. Zoom into the tech industry, and you

can’t fail to notice the astronomical job growth, exceeding that of Silicon Valley

and growing an astonishing 40% in the last six years2

. It’s little wonder why the

city has been nicknamed “Silicon Alley,” in recognition of this growing sector.

Of course, it’s important to recognize that tech employment isn’t limited to

merely one industry; IT jobs are infused throughout most sectors. A recent study

discussing NYC’s growing tech “ecosystem” reports that as of 2014, there were

150,000+ tech jobs in non-tech industries and 58,000 in the tech sector itself3

.

Overall, NYC’s tech industry has helped generate over 500,000 jobs.

And this tech boom is clearly following an upward trajectory. The city’s mayor,

Bill de Blasio, recently laid out his plan to continue strengthening the city’s

tech scene4

. The cornerstones of this plan are education, infrastructure, and

innovation; a strategy that should succeed both in enlarging the tech talent pool

as well as the number of tech-related jobs.

NEW YORK METROIT CONTRACTOR RATE GUIDE

4www.donmor.com

While de Blasio’s efforts are focused on building a stronger talent base for the

future of tech innovation, it doesn’t necessarily solve today’s challenge of finding

enough qualified IT professionals to satisfy increasing demand. Employers

searching for the best team members are fighting to gain a competitive edge in

recruiting and retaining top talent.

While this often includes an in-depth analysis of existing compensation

structures and benefit offerings, many companies are also beginning to tune

into the advantages of a contingent workforce. For contractors themselves, the

benefits of both short- and long-term freelance work are many, including variety

of work and higher pay. Consequently, there seems to be a growing movement

towards this trend of workers. In fact, a recent study published statistics showing

that a massive 34% of the US workforce now consists of freelancers5

.

With these industry highlights and trends in mind, it is easier to approach the

discussion of IT contractor rates. In the following pages, we’ll present some data

that we hope helps to provide a more stable sense of direction as you navigate the

hiring process.

NEW YORK METROIT CONTRACTOR RATE GUIDE

5 www.donmor.com

A Quick Overview of Different Contracting ScenariosThe following contractor pay rate guide is based on median wages for highly

skilled professionals with at least 7 years of experience. However, it’s essential to

bear in mind that these rates are affected by a number of factors. Beyond skills

and experience level, perhaps the most important factor is the type of contract a

given IT professional has chosen: W2, 1099, or Corp-to-Corp.

W2 ContractorsSimilar to a regular W2 employee but on a contract basis, a W2 Contractor is

on your payroll (or on the payroll of your staffing partner). This option mitigates

IRS issues down the road, but also leaves you responsible for the costs of payroll,

withholdings and taxes, as well as any mandatory healthcare coverage. Because

these obligations are in your court, the pay rate of a W2 contractor will typically

be less than 1099 or Corp-to-Corp contractors.

NEW YORK METROIT CONTRACTOR RATE GUIDE

6www.donmor.com

1099 ContractorsAn independent 1099 contractor is essentially the sole owner of an

unincorporated business entity. In this scenario, the contractor is responsible for

paying all income taxes and FICA taxes. This takes any payroll expenses entirely

off your hands, though it also means that the pay rate will likely be higher.

Because you’re relying on the contractor to take care of all the tax obligations,

you may be at a higher risk of an IRS audit down the road.

Corp-to-Corp ContractorsA Corp-to-Corp contractor has set up their own business corporation of which

they are an employee. Like a 1099 contractor, they pay all their own taxes but in

this scenario, you are better protected against any IRS risk. Because of the various

costs involved in setting up an incorporated business, a Corp-to-Corp contactor’s

rate will likely be significantly higher.

NEW YORK METROIT CONTRACTOR RATE GUIDE

7 www.donmor.com

Position Bill Rate Per Hour*.NET Web Developer $102.85

Application and Infrastructure Security Architect $98.45

Application Architecture & Design Developer $115.96

Application Developer $96.25

Business Analyst $77.00

C Level Programmer $103.40

Cloud Based (Microsoft, Amazon, Aqua, Oracle) Administrator $104.50

Cloud Computing Developer $104.50

Customer Relationship Management (CRM) Developer $101.75

Data Center Disaster Recovery Analyst $104.50

Data Center Environment Management, Engineering and Support $88.00

Data Warehouse Manager $107.25

Database Administrator $96.25

Database Architect $107.51

Database Developer $85.79

DB2 Mainframe Database Administrator $90.25

Desktop Support Specialist $47.54

Desktop and Application Virtualization Administrator $71.50

Disaster Recovery Specialist $93.50

Drupal Developer/Architect $103.95

Enterprise Security (AV, Encryption, DLP, PCI) Architect $101.75

ERP and Vendor Product Development $79.36

GIS Support $96.25

Handhelds Application Developer $99.00

HP Quality Assurance Analyst $82.50

Hyperion Developer $115.50

NEW YORK METROIT CONTRACTOR RATE GUIDE

8www.donmor.com

IT Risk and Compliance Auditor $88.00

IT Security Architect/Engineer $104.50

IT Security Operations Specialist $90.75

ITIL Process Analyst $104.50

IVR XML/VXML/JAVA Developer $93.50

Java Developer $95.25

Jr. Project Manager $74.25

Kronos Developer $74.25

Mainframe Operations System Programmer $87.36

Microsoft SharePoint Server Administrator $123.75

Middleware/Service Oriented Architect $99.00

Mobile Applications Developer $110.00

MS SQL Developer $102.85

Network Administrator $63.25

Network Engineer $88.00

Network LAN/WAN/SAN Engineer $82.50

Network Security Architect $112.75

Operations Support Analyst $52.25

Oracle DBA/PL-SQL Developer $96.25

Oracle Developer $96.25

Oracle Midrange Infrastructure DBA $98.25

Oracle Suite Administrator $93.50

PC Support Technician $41.25

PC/LAN Support Analyst (Hardware and/ or Software) $60.50

PeopleSoft Integrator/Support Analyst $114.95

QA Analyst/Engineer $74.25

NEW YORK METROIT CONTRACTOR RATE GUIDE

9 www.donmor.com

Quality Assurance Analyst $79.75

Real-Time Embedded Software Specialist $85.25

Ruby Developer $148.50

Server Operations Programmer $68.75

Software Developer $71.50

Sr. Project Manager $107.25

System Analyst & Administrator $88.00

Technical Writer $74.25

Telecom Technician/Analyst $63.25

Transportation Services IT Support $79.75

Web Developer $91.95

Windows/VMWare Administrator $93.50

Wireless Support Specialist $90.75

*Experienced professionals with a minimum of 7 years of experience.

1 http://labor.ny.gov/stats/pressreleases/pruistat.shtm

2 http://techcrunch.com/2015/02/06/new-york-citys-tech-boom-continues/

3 http://www.nyctecheconomy.com/

4 http://www.businessinsider.com/bill-de-blasio-on-new-york-tech-industry-2015-5

5 http://www.forbes.com/sites/susanadams/2014/09/05/more-than-a-third-of-u-s-workers-are-freelancers-now-but-is-that-good-for-them/

NEW YORK METROIT CONTRACTOR RATE GUIDE

10www.donmor.com

ABOUT DONNELLY & MOORE

At Donnelly & Moore we maximize the potential of human capital and drive

business growth by connecting experienced, highly credentialed IT professionals

with demanding firms across a wide range of industries. Since 1997 our strategic

workforce solutions have helped Fortune 100 companies execute critical

projects and strengthen existing teams. With unparalleled access to talented

IT professionals and a customized, process-based approach to placing highly

qualified individuals on each project our clients undertake, we generate

results that speak for themselves. Our talent pool consists of the country’s top

information technology professionals.

We attract, assess, develop and place coding experts, IT architecture gurus, Web

developers and hardware specialists with clients in finance, utility services,

entertainment, infrastructure, government and other sectors. Our clients

rely on us to enhance their competitiveness by filling key roles with talented

professionals who uphold their culture and internalize their objectives. Our

unmatched capability to attract and retain professionals with critical expertise

enhances workforce productivity, reduces waste and guarantees the quality of

completed work.

Donnelly & Moore

14 Wall Street, 20th Floor

New York, NY 10005

Looking for IT Contractors?

Phone: (212) 488-1171

Email: contact@donmor.com