w2 rate through staffing companies ?

[mhk]

hi, whats the avg %age of money taken by the staffing companies when they place us to their clients for jobs like Sr, Software developer. i got a rate from Comsys and i also know the approximate rate client is giving to comsys and i feel like COMSYS is taking approximately 35% of the client rate.

is this 35% normal ? seems too much to me.

[0xFFFFFFFF]

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mhk wrote:

is this 35% normal ? seems too much to me.

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It's about par for the course these days, for the bigger agencies and body shops.

Great, huh.

[c4d]

What about smaller shops? Would they need to take more because of lack of economy of scale, or less because of less overhead (e.g. home office)?

[NewHavenITguy]

It's not about 'need'  - it's what they can get away with. Small agencies are underfunded as a rule. Anyway having an agent bill $90 and (try to) pay $50 on a 1099 is not unheard of.   That's why you should try to do an end run around the agent.

[DW]

The way I work is, I have standard hourl rates and rate ranges (they wary a littlw for the tye of asisghnment and it's location).  I do not count or care about income of the consulting company, it's their business.  If they are able to make some extra money of my contract good for them...  I preffer to be in situations where every-one is happy and conducts business twards mutual benenfit...

My rates are reasonoble based on currect economic trends, but I may want to increase them once the job market imroves...

As far 30% is conserned:

10-17% is the cost for them to proccess your payroll, then you have a recruiter and an account manager that do not work for free and on top of that all, the agency has their own overhead excpences while still trying to turn a proffit for their investors..  So if the recruiter is able to make $5-$8/h on you and have 8-10 people plased...