What % of gross revenues are your wages to employees and self

Discussion in 'Lawn Mowing' started by Flex-Deck, Sep 24, 2010.

  1. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Posts: 2,846

    I may be a bit nieve, but I have an operation that grosses 125,000, and at the end of the year, my wages paid = 47,000 - of which 28,000 of that goes to my wife and I. We have an S corp, and take the profit from the corp in distributions which are taxed on our personal return. (approx 30000). It seems that when the other (2) employees go on a route, they take a bit longer, and their wages seem to push the 40% of gross numbers. I am thinking of a wage + bonus based on wages should run around 35% of gross.
     
  2. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Posts: 2,846

    This thread is not about superficial stupid crap as to wheather a shidu is better than a stiel, or whatever, this is about the life blood of an operation. Are you guy unaware of your costs, or are you embarrassed about something???
     
  3. Daily Lawn/Landscape

    Daily Lawn/Landscape LawnSite Senior Member
    Posts: 694

    You have not gotten a response in 17 minutes so you go off the wall. Give it some time or call a local business owner and buy him a lunch and throw it by him.

    James
     
  4. Daily Lawn/Landscape

    Daily Lawn/Landscape LawnSite Senior Member
    Posts: 694

    I think you will find a range from 30- 45% depending on the company. I can tell you I'm on the higher end because I pay my guys really well, because I can't afford to continue to train new people.

    There's my 2 cnt.

    James
     
  5. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Posts: 2,846

    Thanks for your input James - Sometimes we spend our life wondering. Here we can just lay it out and know .
     
  6. cpel2004

    cpel2004 LawnSite Bronze Member
    Posts: 1,416

    Up to 60% if you take out the proper taxes!
     
  7. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Posts: 2,846

    I absolutely take out the taxes, do the WC insurance etc. I do not offer a retirement program and probably will not do it since i look for retirees that need something to do to fill any mowing positions. Thanks, Brad
     
  8. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Posts: 5,204

    is taxes basically as much per hour as the employee? I have not had to get into this yet.
     
  9. cpel2004

    cpel2004 LawnSite Bronze Member
    Posts: 1,416

    Not only taxes but Workmans Comp also. At least here in Florida, 3 or more employees and you have to have it!
     
  10. jbannick18

    jbannick18 LawnSite Senior Member
    Posts: 490

    Atleast if it is 3 or less you don't :p. I'm solo right now but plan on hiring someone part time next year and I look forward to not having WC, of course going through proper documentation to get it excluded. I helped out a company who was only the owner, and 2 employees including me during the summer and he was paying $650/month just for WC.
     

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