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atproperty
01-21-2005, 12:55 AM
This is my first years with employees on the books. Believe it or not I am starting out with 6 of them if all contracts are signed as expected.

My budget calls for one foreman at $28,000 per year and 5 workers at approx. $22,000. $138,000 in salaries.

I have done some research on what my additional cost will be per employee. I come up with matching ss and medicare (FICA), FUTA for unemployment, and workers comp.

Using my foreman as an example this is what I come up with.........
$520 awk X .062=$32.24 ss, $520 X .0145=$7.54medicare. I guess these I have to match. $520 x 6.62%=approx. $35 comp out of my pocket. From what I gather unemployment contribution is taxed by .062 X the first $7000 for each employee annually.

On this type of basis I come up with a yearly budget of at least $22,161 to cover FICA, FUTA, COMP for all employees.

Can anyone tell me if I am on the right track or if there is anything I am missing or advice. Although my company is very quality oriented and I have a decent business sense, I am still a rookie walking into some large responsibilities. I could use all the help I can get and some real life figures from you lawn site pros would help.

dforbes
01-21-2005, 09:43 PM
talk to your insurance man. your liability insurance will go up once you have employees it is based on payroll. Work comp insurance, drivers will need a good driving record to help hold your auto insurance rates down. I don't know if you figured federal unemployment. Then there is the ovious, more trucks, more trailers, more equiptment for the guys to use. which requires more fuel, and you need to insure your extra equiptment so more insurance. Not trying to sound negative but these are things you need to look at.
Dennis

J Hisch
01-22-2005, 12:16 AM
to let you know your figuring your cost right on payroll, but so many other factors to consider also. Overtime? Additional Workmans Comp, Liability, vehicle Inusrance as was mention in previous post. Also you are going to need someone to manage all your payroll and Taxes, A/R A/P if you are going to do that then be prepared for a long season. I think you will really be in for a eye opener. Good Luck. A very big jump but agian I am not doubting your business sense, I just know where your heading. Many times a day I think back to just me and my walk behind making a honest and easy living. Everything changes once you add employee's.

atproperty
01-24-2005, 08:57 PM
thank you so much for that advice. i have added your info to my notes and budget. I have tried to move my question to commercial lawn care forum to see if I have more bites if you guys care to follow.

Andre