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putting a guy on payroll how much does it cost you??

Discussion in 'Business Operations' started by HHlandscaping, Mar 16, 2011.

  1. HHlandscaping

    HHlandscaping LawnSite Member
    Posts: 173

    I am thinking of adding an employee and putting him on payroll if he wants 15 an hour which is 600 a week how much do I have to contribute to ss and unemployment ??? ..so how much a week does it really cost me??
     
  2. starry night

    starry night LawnSite Silver Member
    Posts: 2,528

    Typical labor burden is 25% - 30%.
     
  3. HHlandscaping

    HHlandscaping LawnSite Member
    Posts: 173

    so its 25% plus the 600 rite
     
  4. starry night

    starry night LawnSite Silver Member
    Posts: 2,528

    I always use the 30% figure so I figure a guy who I pay $15 is costing me $20.
     
  5. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    dont forget insurance....if he drives for you then you will need to add him to the policy too.....

    and people wonder why we cant cut a 1/4 acer lot for under 50.00....
     
  6. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,844

    Good thread. I just went thru getting quotes for Workers Comp coverage for a part time, college kid to help me out with mowing and landscaping May thru August. Cannot find anything under $500 for a 12 month policy. Unbelievable, and this is paying the kid a total paltry wage of $2,500 or so.
     
  7. LawnsRUsInc.

    LawnsRUsInc. LawnSite Senior Member
    from midwest
    Posts: 916

    Dont forget:
    Work comp ins.
    liability ins.
    payroll processing
    unemployment
    etc...
     
  8. HHlandscaping

    HHlandscaping LawnSite Member
    Posts: 173

    yea employees seem to cost alot of money but they will help you make more money, thats for sure thanks for all your help guys
     
  9. djagusch

    djagusch LawnSite Platinum Member
    from MN
    Posts: 4,162

    The main thing is if you can't afford the cost of the employee doing the work:

    1. Your not paying yourself enough in the first place.

    2. Your not charging enough for the job.
    Posted via Mobile Device
     
  10. snomaha

    snomaha LawnSite Senior Member
    from midwest
    Posts: 857

    Agree - 25% - 30%
     

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