True labor cost

[grassmasterswilson]

Im solo now but needing to hire a guy. I know every state I different but what is your true cost of labor or what do you add to a guys hourly wage to compensate for tax insurance workers comp?

$10/hr guy + $4/ hr for tax/ins/etc?
Posted via Mobile Device

[Duekster]

40% is likely more than enough to cover the burden depending on the Bennies you want to give.

It will come no where close to covering health insurance however.

[grassmasterswilson]

thanks duekster

This would be a hourly trimmer/general labor guy and would be supervised. Down the road the compensation for a foreman would obviously need to be considered.

[Duekster]

Originally Posted by grassmasterswilson

thanks duekster

This would be a hourly trimmer/general labor guy and would be supervised. Down the road the compensation for a foreman would obviously need to be considered.

If you want to float some calculations past me feel free.

if this is a person you want to treat and groom then you need to look at
sic time
holiday
vacation
FICA
WC
GL
PPE / Uniforms as a percentage of pay.

work off 2080 hours per year.

IE 40 hours vacation / 2080 = 1.92%

Just add them up.

In job costing I allow 20% over time in my billable rate.
as well as a fudge factor....

[muddywater]

My pecentage is 20%. No sick time, no vacation, no health insurance, no holiday pay for laborers.

[DuallyVette]

holiday
vacation
FICA
WC
windshield time
equipment maintenance
= 2x wages. $10 an hour worker cost $20 for every hour that he is standing on a customers property.
JMHO

[grass-scapes]

Originally Posted by DuallyVette

holiday
vacation
FICA
WC
windshield time
equipment maintenance
= 2x wages. $10 an hour worker cost $20 for every hour that he is standing on a customers property.
JMHO

Why would you figure equipment maintenance into a labor burden rate?

Windshield time is just that.....time. Labor burden is the same whether the employee is working or riding.

I am at about 40%, so a 10 dollar an hour would be $14 labor burden.

[Duekster]

Originally Posted by grass-scapes

Why would you figure equipment maintenance into a labor burden rate?

Windshield time is just that.....time. Labor burden is the same whether the employee is working or riding.

I am at about 40%, so a 10 dollar an hour would be $14 labor burden.

Gotta keep em separated.

[McFarland_Lawn_Care]

ya, you are in the ballpark 30-40% over wage is good for rounding numbers. Depends on benefits package mostly - which most seasonal can't offer.

[Dr.NewEarth]

My employee cost on top of their direct hourly wage is 21 per cent. If they have medical/dental it's 27 percent (6 percent more.) Then the business operating costs, return on investment and profit (haha) are added on top of that.