How much do employees actually cost?

[terracare]

Partner and I have gotten to the point where there will be too much workload for just the two of us, so we are bringing in some help. We will be paying our first employee 8.00/hr. My question to everyone is how much will the employee actually cost me per hour over his 8.00/hr wage? I will be figuring workmens compensation outside of this. I would just like to know what percentage over that 8.00 will taxes be. I suppose I could be easier about it an assume that I will be paying him 10.00/hr for easy math

Todd

 

[j fisher]

Figure 15% over his hourly wage.

 

[terracare]

Ty for the reply. I was estimating about 17%

Todd

 

[lrose2]

Todd,

Besides the hourly rate, you will need to figure for workers compensation as you mentioned, plus the company share of social security, state unemployment and federal unemployment. Whatever the rates are for your area is what needs to be figured. Hope this helps out!

 

[MWHC]

Don't forget to add in the extra abuse the equipment takes and the mental strain (On you) it takes to tolerate a lot of the bottom feeders that want to work for you.

 

[longslawn]

I would estimate 30% probably closer to 26%

 

[ksland]

how do you figure?

 

[thill]

Terracare:

Each state differs, based on state unemployment taxes and W/C insurance. I'll give you ours to see if it helps you calculate yours.

FICA & FICA-M matching combined 7.65%
Fed unemployment FUTA 00.8% of 1st 8,000
TX unemployment SUTA 2.70% of 1st 9,000
W/C insurance 9.41%

Total 20.56%

Our W/C is high since we are just over 2 years in the business. Once the loss history is established, this should go down.

Hope this helps.

Tom

 

[longslawn]

Exactly as thill says plus any benefit cost.

 

[wojo23323]

i will be using a PEO this year for my pay and my employees. They charge me 16.87%. That includes workers comp.