Again, I believe you are talking about what a person is paid. Versus what they COST. 21% is probably the difference between what a person earns on a contract basis versus a permanent basis. That has nothing to do with the added cost of Burden and Overhead.
Let's do the math.
well, a contract rate can be roughly doubled and multiplied by a thousand to arrive at the equivalent salary. That is the on-the-street view.
ie.
$60/ hour = $120k/ year.
BUT.. there are 1800 hours in a working year after holidays, etc. are removed. If you do the math you will find that the true equivalent salary in the above case is 108k.
Contractors are deemed a bit more expensive to the organization usually. 21% seems about right.
$60/ hour is not really that expensive in this business. I go out for that plus per diem. My equivalent salary is 90K.
90K vs 108K.
You will find it is 21%.
that is "proof". Thanks. Quid Pro Quo.