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New employee hire, Wisconsin, some questions

Discussion in 'Business Operations' started by Two Seasons, Feb 6, 2008.

  1. Two Seasons

    Two Seasons LawnSite Senior Member
    Messages: 791

    We think we are at the point of hiring our first employee and I've got a question. New hire wages, with workman's comp, will consume about 26% of gross sales. Does that sound about right?
  2. AI Inc

    AI Inc LawnSite Fanatic
    Messages: 26,073

    Seems high for 1 employee , I have 3 and it runs about 33%
  3. Acswaupaca1

    Acswaupaca1 LawnSite Senior Member
    Messages: 467

    Stop by at an accountants office. They can tell you a percent on the dollar. Then add that to your costs, everyone raises their prices yearly.
    Let me know what they tell you.
  4. Desertdweller

    Desertdweller LawnSite Member
    Messages: 159

    Naturally depends on salary. We usually take the salary and add 25-30% to cover taxes, comp, unemployment, PTO etc.
  5. Acswaupaca1

    Acswaupaca1 LawnSite Senior Member
    Messages: 467

    thats what i was figuring in my budget for this year
  6. Adam3669

    Adam3669 LawnSite Senior Member
    Messages: 311

    Good lord! 25% per employee?

    Am I missing something?
  7. LawnsRUsInc.

    LawnsRUsInc. LawnSite Senior Member
    from midwest
    Messages: 916

    26% of gross sales what happens if your sales are a million? That would be one expensive employee. I would figure 26% onto the top of what your paying that individual thats about what we pay for taxs work comp etc for a lawn care guy landscape is higher on the work comp spectrum.

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