whofrankw
Member
- Location
- milford nj
How much does a $12 an hour employee cost and how much does a $30 an hour employee cost. Im in New Jersey and trying to figure out overhead. Thanks in advance
Cost of Employees
- Thread starter whofrankw
- Start date
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I think it will depend on multiple things.
Unemplyment tax, medical, retirement,...
Here you can sign up and they have a program that you can input numbrrs and it will give you the final hourly that you need to charge per employee.
Unemplyment tax, medical, retirement,...
Here you can sign up and they have a program that you can input numbrrs and it will give you the final hourly that you need to charge per employee.
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brantmacga
Señor Member
- Location
- Georgia
- Occupation
- Former Child
Labor burden for us averages 25%, payroll tax is about 7.5%.
So $12/hr would cost $16/hr. $30/hr costs $40/hr.
For jobs I bid, these are not calculated in overhead as they are a direct job cost, and office staff wages are included in indirect job costs; i calculate how many labor hours of office staff work is required as a percentage of job labor hours. It varies by type of job and will be somewhere between 5%-10%. Jobs that require submittals and close out documents will be closer to 10%.
Now for service work I would include office staff as overhead when determining the hourly rate.
Hopefully that’s not too confusing.
Sent from my iPhone using Tapatalk
So $12/hr would cost $16/hr. $30/hr costs $40/hr.
For jobs I bid, these are not calculated in overhead as they are a direct job cost, and office staff wages are included in indirect job costs; i calculate how many labor hours of office staff work is required as a percentage of job labor hours. It varies by type of job and will be somewhere between 5%-10%. Jobs that require submittals and close out documents will be closer to 10%.
Now for service work I would include office staff as overhead when determining the hourly rate.
Hopefully that’s not too confusing.
Sent from my iPhone using Tapatalk
Last edited:
Nuber
State Certified Practitioner of Electrical Arts
- Location
- Colorado
- Occupation
- Master Electrician
I would double the rate of pay for your highest worker. That should get you close.
Remember - auto mechanics are willing to post $100 per hour shop rates (and even higher in some cases). And you have to bring your car to them instead of the other way around.
Don't be shy, cover ALL of your expenses and charge what you are worth. In my state the average Journeyman takes about 8 years to get his license (even though it should only take 4, but that is another topic). Charge accordingly - you have a rare talent that is worth $$$$.
PS - I am not advocating that you rip people off, there is a moral component to this, but being an electrician (a licensed electrician) is a rare skill.
Rare = expensive. Charge accordingly.
Remember - auto mechanics are willing to post $100 per hour shop rates (and even higher in some cases). And you have to bring your car to them instead of the other way around.
Don't be shy, cover ALL of your expenses and charge what you are worth. In my state the average Journeyman takes about 8 years to get his license (even though it should only take 4, but that is another topic). Charge accordingly - you have a rare talent that is worth $$$$.
PS - I am not advocating that you rip people off, there is a moral component to this, but being an electrician (a licensed electrician) is a rare skill.
Rare = expensive. Charge accordingly.
- Status