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Just curious. If you hire a minimum wage ($14 hr) employee, how much per hr does it actually cost to hire them with everything included, insurance and such? About 18 hr? thank you. I am in Calif
The same people that moan and groan about people earning a living wage are the same people who complain when a plumber comes to their house and charges $200 for 15 minutes work.
Just curious. If you hire a minimum wage ($14 hr) employee, how much per hr does it actually cost to hire them with everything included, insurance and such? About 18 hr? thank you. I am in Calif
Are you hiring your first employee?
Or are you talking about an existing business that already has employees?
At the absolute mnimum, in addition to wages, you would have to pay the owner's share of Social Security, Unemployment Compenstion, and workmens' compensation (privately provided, but usually mandated); some exemptions apply here (agricultural work, for example) but even these are being policed more rigidly as we advance (or decline?) toward a post-industrial world.
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This can vary by state and even city, but here at $14/hour with no benefits of any kind the SS, Medicare and worker’s compensation would make the hourly cost at least $18. The thing is that worker’s compensation is based on the actual work being done and the employer’s past history. Then it would be a lot more if the employer pays a payroll service to do the bookkeeping. That could cost over $1,000/ month, so for one employee only, an additional cost of $6.25/hour, so total of $24.25. There may also be other costs, such as higher business liability insurance additional computer or other equipment, more utilities used.
This can vary by state and even city, but here at $14/hour with no benefits of any kind the SS, Medicare and worker’s compensation would make the hourly cost at least $18. The thing is that worker’s compensation is based on the actual work being done and the employer’s past history. Then it would be a lot more if the employer pays a payroll service to do the bookkeeping. That could cost over $1,000/ month, so for one employee only, an additional cost of $6.25/hour, so total of $24.25. There may also be other costs, such as higher business liability insurance additional computer or other equipment, more utilities used.
most people use 25-30% as the true up on insurance, taxes etc. If you are not paying health insurance it's probably half that or even less depending on the state the business is in.
Rule of thumb. The actual salary will be half of the cost. With some variation due to local tax laws and the amount of training needed, but you can ball park it.
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