Employee Costs

[Jamesh921]

So, for those of you that have employees "on the books" and who pay all the required gov't taxes and insurances, what is your employee costs? In other words, what does it cost to "legitimately" employ a person in your company? Per year? per month? per hour? If you could break it down to "per hour" would be best. Thanks, James

 

[Able 1]

So, for those of you that have employees "on the books" and who pay all the required gov't taxes and insurances, what is your employee costs? In other words, what does it cost to "legitimately" employ a person in your company? Per year? per month? per hour? If you could break it down to "per hour" would be best. Thanks, James

I pay my guy 14 per hour, 7 days vacation, and holiday pay(he gets other perks also). I would say I pay $18 per hour all said and done. If you are turning work down or can't fit people in when THEY want it done it's time to hire. I hope to hire another guy next Monday, we will see...

 

[Kris Stevenson]

I believe my employee expenses are about 25% additional to what I pay my guys. The only thing the 25% doesn't cover is the $120 a quarter I pay to my bookkeeper for doing the payroll and the reports.

 

[Askal]

SSi 7.5%
Unemployment 2.5%
Comp 9%
Book keeper 100 a month
But the BIG costs are a lower add on rate. Higher broken lost equipment costs and supervision time. These costs eclipse the fixed costs above.

 

[Brian H]

SSi 7.5%
Unemployment 2.5%
Comp 9%
Book keeper 100 a month
But the BIG costs are a lower add on rate. Higher broken lost equipment costs and supervision time. These costs eclipse the fixed costs above.

And don't forget about higher productivity if they are working with you. Or more revenue if you have them working by themselves.

Having employees requires a different mindset then doing everything yourself. There are trade offs. As Askal said, there are reasons you can come up not to grow your business. There are also plenty of reasons TO grow your business beyond yourself.

What are you looking for them to do? Is it to assist you? Will they be running their own truck? Are there tasks besides cleaning that you will want them to do like answering the phone, booking appointments etc.?

 

[Able 1]

SSi 7.5%
Unemployment 2.5%
Comp 9%
Book keeper 100 a month
But the BIG costs are a lower add on rate. Higher broken lost equipment costs and supervision time. These costs eclipse the fixed costs above.

These numbers are based on what you pay them, so $19.00 on every hundred they make.. Not bad if you ask me. As Brian said the higher productivity by just hiring a helper will out way the extra expense. I went from $100 an hour to $165 with a helper,and I'm not feeling as burned out at the end of the day.

 

[Shane Deubell]

The big question is full/part time?

If full time then what kind of benefit package?
Paid time off, health insurance, training.

Depending on your answers this can add $3-7 hour to the cost.

Seems like most budget between 25-30% for payroll taxes,workers comp, disability on top of hourly wage.

 

[Jamesh921]

I have read that if you pay an employee around $10-$12 per hour then you should charge (budget) about $40 per hour to cover all costs plus profit. However, if you pay closer to $20 per hour, you should adjust that number to 3X that amount which would be $60 per hour.
Anybody else ever see/read this information?
thanks,
James

 

[Able 1]

I have read that if you pay an employee around $10-$12 per hour then you should charge (budget) about $40 per hour to cover all costs plus profit. However, if you pay closer to $20 per hour, you should adjust that number to 3X that amount which would be $60 per hour.
Anybody else ever see/read this information?
thanks,
James

I haven't seen or read that, and I'm not much of a number cruncher, but I can tell you if you have, or can get the work you won't even notice the extra money paid out.. I would say you should expect to pay 4-5 dollars an hour above what you are paying them, but then you are making an extra $65 per hour with them working with you..

 

[Jeremy]

I figure taxes and benefits at 34% but that could change depending on your state.

 

[Mike Draper]

I average 50-60 an hour higher gross with an employee. I also dont have to work as hard.

 

[TomKing]

I multiply 1.25 of the wage for burden.
This is for any employee.

If you are talking a helper then you can look at it as added per hour revenue.

If you are talking another truck it is a whole new issue
You have equipment costs, advertising to maintain that level of production