How much is your employee ACTUALLY costing you?
The cost of an employee to a company is substantially higher than one may think. The chart below details the actual employee costs hourly/yearly, once fixed costs and basic fringe benefits are factored in.
| HOURLY: 10.00 x 40 HRS/WK x 52 WKS | $20,800.00 |
|---|---|
| PAYROLL COSTS | |
| FICA (6.2%) | $1,289.60 |
| Medicare (1.45%) | $301.60 |
| Fed Unemployment (0.8% to $7,000) | $56.00 |
| State Unemployment (3.2) Variable | $655.60 |
| Workers Comp. Insurance | |
| General Labor (Code 3632) & Rate 3.2% Variable | $665.60 |
| Fringe Benefits Burden | |
| (National average is 11.7%) Includes Insurance, bonuses etc. Excludes vacations, holidays, sick days, etc. | $2,433.60 |
| Administrative Cost Burden | |
| Including all HR Functions and paperwork (National average is 10%) | $2,080.00 |
| Total Cost of Employee Per Year | $28,292 |
| Productive Time | |
| 40 hrs./wk x 52 wks. | 2,080 hours |
| Less Non-productive time | |
| Holidays | 5 x 8hrs. = 40 hours |
| Vacation | 5 x 8hrs. = 40 hours |
| SICK DAYS | 5 x 8 hrs. = 40 hours |
| PERSONAL DAYS | 2 x 8hrs. = 16 hours |
| SUBTOTAL | 136 hours |
| TOTAL PRODUCTIVE TIME REALIZED | 1,944 hours |
