Looking to get an estimate of the true cost of an employee

Fusion916

Hi, I am not sure if this is the right section or if this is even the right forum for this. I was looking for a forum for small business advice and this is the closest I can find.

I want to start a small business (if it is feasible) and I am looking to get a rough estimate of the true cost of an employee paid minimum wage (I live in CA and it's $8/hour).

I know I could just do 8 * hours worked * 365 (or however many days I have my place opened the year) but I already know this leaves a big portion such as employee insurrance, employee taxes and such. I am just looking for a rough estimate for a feasibility study, so it doesn't need to be really accurate, just accurate enough to get me within 80% or so.

I also know there is increased costs for more employees, even if I only have one working at a time (I planned to only have 2-3 different employees, but only one working at a time).

Would appreciate your help, thanks.

PlutoinCapricorn

Are you in the US? This is a UK forum - someone might be able to help though.

PlutoinCapricorn

This website mentions $ so may be helpful:

http://partnerit.com/2009/10/how-much-does-a-full-time-employee-really-cost/

HappyMJ

Canada...well here in the UK it is employee wages plus employers National Insurance at 12.8% on top. Employers Liability insurance is required and it depends in what industry you are in as to what the cost is. Public Liability insurance is also required and is variable. Legal Expenses insurance is also highly recommended. Professional Indemnity insurance is optional but some clients request it as well. Product Liability insurance is optional but may be useful. The more the business is worth makes the difference as to whether you wish to protect it or not.

You need to seek advice from someone local to where you are possible someone already in the trade that you wish to set up in.

dmg24

HappyMJ wrote: »

Canada...well here in the UK it is employee wages plus employers National Insurance at 12.8% on top. Employers Liability insurance is required and it depends in what industry you are in as to what the cost is. Public Liability insurance is also required and is variable. Legal Expenses insurance is also highly recommended. Professional Indemnity insurance is optional but some clients request it as well. Product Liability insurance is optional but may be useful. The more the business is worth makes the difference as to whether you wish to protect it or not.

You need to seek advice from someone local to where you are possible someone already in the trade that you wish to set up in.

It might be best for someone living in CA to research California state law.

Vader123

I am an employer (128 people across 5 UK locations) I do offer :

1. private free gym membership,
2. full BUPA cover for employee plus family (excl pre-existing conditions),
3. Christmas bonus fixed at £1500 per year
4. Contribution based pension
5. Sickness paid from day 1 until self cert
6. 29 days annual leave (pro rata)
7. Flexible working (where role permits)
8. On-site subsidied creche (only at 2 locations, both outsourced)

My financial guru says that to pay for all this, you double their annual salary offered.

In return for this, I get :

• low sickness rates
• low (read 0) retention problems
• great work ethic
• excellent team morale (I employ a outside agency to help)
• amazing profits (makes my life easier!!!!!!)

This is a UK based company with a huge level of diversification, but the "double up" rule works well.

Vader

Savvy_Sue

^^
| |

Expect to be inundated with CVs! :rotfl:

ohreally

Savvy_Sue wrote: »

^^

Expect to be inundated with CVs!

Don't think so. 29 days annual leave, i get more than double that now and got more than that 30 years ago.

Vader123

ohreally wrote: »

Don't think so. 29 days annual leave, i get more than double that now and got more than that 30 years ago.

Really?

I always get compared to public sector jobs and they get upwards of 33 days, but thats after 10 years service!

Vader

DreamerV

ohreally wrote: »

Don't think so. 29 days annual leave, i get more than double that now and got more than that 30 years ago.

What field are you in? Teaching? Something that involves just term time work? I get 25 days annual leave (then 11 days paid public/privilege days) and that's considered more than the average person. In 8 years I'll get 30 days annual leave + 11 days public holidays...but it doesn't sound anywhere near as good as your level of leave!

DreamerV

Vader123 wrote: »

I am an employer (128 people across 5 UK locations) I do offer :

1. private free gym membership,
2. full BUPA cover for employee plus family (excl pre-existing conditions),
3. Christmas bonus fixed at £1500 per year
4. Contribution based pension
5. Sickness paid from day 1 until self cert
6. 29 days annual leave (pro rata)
7. Flexible working (where role permits)
8. On-site subsidied creche (only at 2 locations, both outsourced)

My financial guru says that to pay for all this, you double their annual salary offered.

In return for this, I get :

• low sickness rates
• low (read 0) retention problems
• great work ethic
• excellent team morale (I employ a outside agency to help)
• amazing profits (makes my life easier!!!!!!)

This is a UK based company with a huge level of diversification, but the "double up" rule works well.

Vader

I wish more employers operated at this level, with this understanding. My employer likes to say the right things, and pretend they're the gold standard, but in actual practice is unfair to its employees and has barely legal practices (and I'm not in the private sector!). Well done on seeing the bigger picture...I aspire to find such an employer!