Payroll %

Discussion in 'Business Operations' started by site, Jul 11, 2001.

  1. site

    site LawnSite Member
    Messages: 168

    What percentage of your gross is taken up by payroll expense? Does anyone know the industry average. For my 6 years in business mine has averaged between 20 and 30%. When it's up near 30% I know Im having productivity problems. I pay well too so that adds. Also my salary is includednow that the business is a corporation.
  2. Stonehenge

    Stonehenge LawnSite Bronze Member
    from Midwest
    Messages: 1,276

    That sounds about right. I'm in that same neighborhood, too.
  3. Lanelle

    Lanelle LawnSite Bronze Member
    Messages: 1,361

    It would seem that the type of work you do would have a bearing on the appropriate percentage. Whether you mow and maintain or install landscaping or hardscaping will affect your numbers.
  4. tpirobert

    tpirobert LawnSite Member
    Messages: 207

    I went back to solo operation. My gross is $2000 above and net is $9000 above year to date 2000. Last year had 1.5 employees. Go figure. Payroll had been in the 20-30% range. I may hire again in the furure, but with better systems in place and higher expectations.
  5. candylady11

    candylady11 LawnSite Member
    from TEXAS
    Messages: 1

    I have a small business in Florida with 3 employees. I've been hiring the tax office to handle with my payroll. My employees agree that I can pay them monthly, so I've been doing monthly payroll. Now the tax office told me the new law takes effect that payroll needs to be biweekly. I don't know if they are lying to me to charge me more or not and want to find out. I tried to search the web on how often I need to do payroll in Florida.
  6. mslawn

    mslawn LawnSite Senior Member
    from LA
    Messages: 483

    Mine came it kinda high at 39%. However, I pay my guys thru the winter months doing small landscaping jobs, odds and ends around the shop, maintenance on the equipment and doorhanging. This has proven to help me retain good employees.

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