employee $ per hour after paperwork

Discussion in 'Business Operations' started by captaingreen, Apr 13, 2004.

  1. captaingreen

    captaingreen LawnSite Senior Member
    Messages: 471

    I just started using some part time help this year and have a question maybe y'all can help me with. It's seems 8-10.00 an hour was discussed as a fair wage in a search I did for lawncare employees. My question is after paying taxes, unemployment insurance, and workmans comp., how much are you actually paying per hour for this employee? I would appreciate it if any of you have broken this number down before. Thanks
  2. scott's turf

    scott's turf LawnSite Senior Member
    from NH
    Messages: 949

    between matching taxes, unemployment, and wc it adds up to around 20-25% more than the wage paid.
  3. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Messages: 2,116

    Workman's comp insurance is about 10% above and beyond what you pay your employee.

    Unemployment will depend on how good or bad you've been in the past with claims. In Texas, the rate is automatically set at 2.7% for the first six quarters. After that, it can be as high as 8.5%, I believe.

    Social Security is another 7.5% or so.

    The variable is the unemployment rate, so I assume the worst for a total of 26%.

    Now, you have to figure overtime in with all those numbers. You are required to pay 1.5 times the hourly rate for all hours worked over 40 in a week.

    A $8.50 per hour employee will cost you about:

    $10.71 per hour in a 40 hour work week

    $11.31 per hour in a 45 hour work week

    $11.78 per hour in a 50 hour work week

    $12.17 per hour in a 55 hour work week

    $12.50 per hour in a 60 hour work week

    What's really stupid about the workmans comp insurance is that it's based strictly on how much you pay. If you have a more experienced employee that you're paying more than a newbie, it costs you more to insure him. But common sense says that a newbie is far more likely to lose a finger in an accident than a more veteran, higher paid employee.

    DFW Area Landscaper
  4. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Messages: 4,040

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