I may be a bit nieve, but I have an operation that grosses 125,000, and at the end of the year, my wages paid = 47,000 - of which 28,000 of that goes to my wife and I. We have an S corp, and take the profit from the corp in distributions which are taxed on our personal return. (approx 30000). It seems that when the other (2) employees go on a route, they take a bit longer, and their wages seem to push the 40% of gross numbers. I am thinking of a wage + bonus based on wages should run around 35% of gross.