employee costs

[bpk]

I would like to hire my first employee. Before I call my insurance guy approximatley what does adding an employee cost, for mainly residential and small commercial jobs? Everybody has told me its not as bad as you would think but they never say how much. Thanks in advance

 

[480sparky]

What an employee costs depends on what your operating and overhead costs are, what you are paying per hour, benefits......

 

[DanZ]

A typical rule of thumb, used more for estimating than for actual numbers, is to take their base pay, and double it. This typically works works to cover insurance, paid leave, mileage, overtime, etc. This won't work if you're planning on buying them a company car!

So, by rough guesstamite, if you're paying $10 hour * 2080 (40 Hours * 52 weeks) you have $20800 in base pay, now double it to cover the "miscellaneous" expenses and you have $20800*2= $41600 per year

 

[SEO]

And don't forget to add profit.

 

[brantmacga]

my expense was employee wage + 50% w/o benefits.

 

[g@friendly]

I am with Dan Z but everyone is different I have 401k, vacation, profit share, medical, training etc.. but don't forget workers comp just add to your policy that you have already. make sure his green card is good and check his driver license. I had many guy that passed background and drug test but could not insure to drive my van

 

[DanZ]

I am with Dan Z but everyone is different I have 401k, vacation, profit share, medical, training etc.. but don't forget workers comp just add to your policy that you have already. make sure his green card is good and check his driver license. I had many guy that passed background and drug test but could not insure to drive my van

Oh, yeah, that's one I forgot. Have a background check done, and make sure they have a valid license! Drug test can be handy too.