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Employee Taxes/Unemployment Questions


LawnSite Member
Grand Rapids, MI
I'm tossing around some numbers and always get hung up on this.

For example, say I pay someone 10/hr, so 40 hours, 50 weeks in a year to be easy, $20,000 gross. Now, how much of that 20,000 do I really have to pay? Do I have to pay all that amount, more than it due to added fees, less due to fees being taken out?

Could someone give me a total for an employee with all the workman's comp and everything added up together or just a good base to use?

Also, I live up in the north so we have shortened seasons. How does unemployment work? Using the above example, I figure I will be paying 10/hr, for 40 hours for approximately 37 weeks. How would the other 13 weeks go if he does not work and files unemployment before the spring starts again? Do I still pay the full amount or how much does the state pay - any ideas?

So far I'm just tossing in a fixed figure for my employees such as 25000 for the year, but only working the 37 weeks. Not sure if the number is accurate or how the rest of the payments work.

Thanks payup


LawnSite Senior Member
the south
I use a payroll company (paychex), they figure out all the numbers and I just sign the check after they mail it to me. Taxes and insurance for me are anywhere between $2-$3 per hour, but you should call a local payroll company to get numbers in your area.


LawnSite Senior Member
Saint Paul MN
We factor our costs of using paychex into our employee budget. This is 1.225 which includes MN work comp, unemployment and all the voodoo's.

Work comp basically works like this. If you have someone go onto it your experience rating goes up. Generally the unemployment insurance works like this. If your staff gets 100.00 in benefits you have to pay 115.00 back over about 3 years.

This is not a free meal. You pay everything back plus administration fees. For an additional bonus the agency starts you out a about 2% of pay (included in my factor of 1.225) just so you don't forget who's in charge.