How Much Is That Administrative Employee Really Costing You?
They say,"$15.00 / hour", you say, "Fine, you start Monday." But how much is that on-site administrative employee really costing you?
There are many expenses, other than the actual salary (gross wages) to figure in. An employer must pay 6.2% of the gross wages for Social Security and 1.45% for Medicare.* An employer also must pay 3.4% of the gross wages for State Unemployment and .1% for Employment Training Tax.** Federal Unemployment costs the employer anywhere from .008% - 6.5% of the gross wages, depending on the previous State Unemployment claims history.*** A huge cost of employment is Worker's Compensation. Unfortunately, Worker’s Compensation rates are figured on a sort of “points” system and paid in an annual premium to an insurance agent, so we could not put an actual percentage on it for this report. But it is the largest total, direct cost-of-employment burden on employers.
Please keep in mind, that the above percentages do not take into consideration the company-paid benefits that most companies offer. These include paid vacation, paid holidays, paid sick days, paid PTO (personal time off), 401k, stock options and medical benefits, just to name a few! This also doesn't take into consideration the "down-time" of many administrative employees.
Do you really need that 40 hour per week employee? Or do you need an as-needed, off-site satellite office to make all of your administrative tasks run smoothly and project that professional image for your company that you demand? Let ChrisTech Industries provide you with some of our "benefits" ...so that you can save on some of yours!
Note: Information in this report pertains to employment tax percentages for the State of California only. Copyright © 2001 ChrisTech Industries.
*These figures were provided courtesy of Pat Fournier of Fournier’s Accounting Service, Patricia@FourniersAccountingService.com.**These figures were provided courtesy of http://www.taxes.ca.gov. ***This figure was provided courtesy of Diane Nicholson of Nicholson Tax and Accounting, http://www.taxbreak2k.com.
