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Old 01-19-2016, 10:34 AM
recycledsole recycledsole is offline
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Employees- What % will the extra required stuff cost? (taxes, payroll, etc...)

Im going to hire people this year for the first time. If i pay him $15/hr @ 40 hours/week this comes to $600/week and about $21600/year. What additional expenses will i be required to incur? Is it like an additional 10%?
I am anticipating increase in gen lib insurance: $500
increase in car insurance if he drives(yes): $400
payroll, medicare, social security: ?
pretty sure im not required to have unemployment, health insurance, or workers comp right for a small business with 1-3 employees?
Thank you so much!
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Old 01-19-2016, 10:38 AM
Kawizx62003 Kawizx62003 is online now
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about an additional dollar per hour. on the low end. I'd budget $2 with comp.
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Old 01-19-2016, 10:50 AM
recycledsole recycledsole is offline
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thank you. is workers comp worth having?
+$1/hr would come to 6% increase
+$2/hr 13% increase
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Old 01-19-2016, 10:52 AM
Kawizx62003 Kawizx62003 is online now
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In VA you have to have it once you hit 3 employees. I only have one and had to get it for subcontracting work. But, yes I think it makes me feel safer.
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Old 01-19-2016, 11:37 AM
recycledsole recycledsole is offline
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yea. what about unemployement insurance?
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Old 01-19-2016, 02:47 PM
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ManuelMowing ManuelMowing is offline
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Quote:
Originally Posted by recycledsole View Post
yea. what about unemployement insurance?
That is normally a tax and is not insurance. It will depend on what state you are living and the rate will vary.
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Old 01-19-2016, 02:56 PM
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ManuelMowing ManuelMowing is offline
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Quote:
Originally Posted by recycledsole View Post
Im going to hire people this year for the first time. If i pay him $15/hr @ 40 hours/week this comes to $600/week and about $21600/year. What additional expenses will i be required to incur? Is it like an additional 10%?
I am anticipating increase in gen lib insurance: $500
increase in car insurance if he drives(yes): $400
payroll, medicare, social security: ?
pretty sure im not required to have unemployment, health insurance, or workers comp right for a small business with 1-3 employees?
Thank you so much!
You are going to have to do a 941 from the IRS and that pays for Social Security and Medicare. These are taxed at .124 and .029 of an employees wages. At $15 working 40 hours you would owe 74.4 and 17.4 = $91.8. Keep in mind you are also withholding part of these wages when you are paying your employee. If they had no deductions you would pay half and they would pay half.

In TN we pay the state tax for unemployment and it runs me about 1/6th of the federal rate. Our rate changes based on how many people file for unemployment under our name.

Workers compensation is based on what type of work people are doing, how many hours you have, how long you have been doing your work, and how many claims you have against you.
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2005 Ford F350 Crew Cab
1988 Chevy C30 Flatbed
1987 Chevy 1500
Myers Snowplow
61" Scag Turf Tiger
52" Scag Walk Behind
36" Scag Walk Behind
STIHL 100 RX (x2)
STIHL BR 600
STIHL BG55 (x2)
STIHL MS-441

and a bunch of other junk to get the job done
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  #8  
Old 01-19-2016, 03:34 PM
DeltaLawnPros DeltaLawnPros is offline
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The short answer is plan to add 12% to cover all the government stuff (payroll taxes, unemployment, etc...). This does not cover the cost of workers comp.
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  #9  
Old 01-19-2016, 04:45 PM
grassmasterswilson grassmasterswilson is online now
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20% -- social security, Med, work comp, payroll fees, unemployment.
Posted via Mobile Device
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  #10  
Old 01-19-2016, 05:29 PM
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Cedar Lawn Care Cedar Lawn Care is online now
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I paid my guy $15/hour and had a payroll company do everything for me. I think after all the expenses it came out to $18-19/hour.
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