Anyone know what the standard conversion rates are for annual full-time salary to contract (per hour) rate in Toronto? (Financial Services)

Looking for responses from anyone based in Financial Services/Banking in the City. I'm seeing various figures ranging from 10% to 40% to account for holidays, benefits, job security, etc etc

Cheers!

I was told (by a recruiter though so that may discount his advice!) that you take the salary you would expect and divide it in 2 and thats the comparative hourly wage.

50k = 25p/h

you'll get paid a extra 4% for vacation on top of that.

No. Contractors get paid a rate per hour worked and that's that.

nope, your recruiter (unless they give you actual days off work) must pay vacation pay. Make sure when negotiating a contract with a recruiter that the rate is quoted before vaction pay.

http://www.labour.gov.on.ca/english/...e/vacation.php

certain jobs dont pay this but for the OP, in financial services, they will.

If you say so. However, please note that I've been a contractor in and around Toronto since 1986 and have subcontracted a few hundred people over the years. Clients include the banks, insurance companies, utilities, government.

IME, there has never been any vacation pay nor any sick pay. No nothing except $n per hour.

fair enough. I cant compete with that kind of background but this 4% thing is just what I've read and experienced with the two contracts I've had with Banks in Toronto.

No they don't. If you are a contractor, you are considered self employed or you are a contracting company if incorporated, neither of which benefit from vacation pay. Vacation pay and employment legislation only applies to direct employees.

CRA have a definition to determine if the relationship is that of an employee or contractor, as some use the arrangement to avoid employers contributions and vacation pay. http://www.cra-arc.gc.ca/E/pub/tg/rc4110/rc4110-e.html
Just calling yourself a contractor does not necessarily make you one in the eyes of CRA. If they find the relationship is really that of employer/ employee they can still reassess.

We hire both contractors and have employees, contractors get paid the flat negotiated rate, the rest is up to them. Employees have source deductions and vacation pay.

There is no fixed formula to determine what a contractor should charge, market forces do that.

Are you incorporated or a de facto employee? Do the banks, or your pimp, deduct anything from your pay?

Yes, the issue being whether or not your a Contract for Service or a Contract of Service. You are talking (at least at the beginning of your post) about contractors - self employed Contractors FOR service.

The OP is (most likely - I could be wrong) going to be a contract OF service. If so , then he would be eligible to earn the 4% vacation pay because he wont get any paid vacation,benefits or perks that working in a bank on a permanent basis usually offers.

I was an employee of the recruitment consultant, working in the bank on a fixed term contract.
Of course they took their cut of what the Bank was paying for my service but my contract was not with the bank, it was with the 'pimp'.

That's not what's ordinarilly meant by a contractor. Contractors are typically at arm's length from the pimp, their pay is not subject to any sort of deductions. Contractors charge HST on their rate.

my post was referring to someone 'being on contract'. I didnt mention 'Contractors' .

A case of crossed wires I'd say.

Thanks all for the input. Let the haggling begin!