taxes, employee-compensation, insuranceI’m writing my business plan and got to the financial sheet. I wanted to know how much do I need to account for an employee in Ohio? If I’m paying that employee, say, 40K a year, how much am I actually paying? How much are taxes, insurance and all those expenses?
If I’m paying that employee, say, 40K a year, how much am I actually paying? How much are taxes, insurance and all those expenses?
Wages, taxes, insurance, benefits and “all those expenses” change in time, and are subject to negotiations with the prospective employee. For this reason, itemizing these expenses is going to look like quite a silly amount of detail for a business plan. What if you find the ideal candidate, but he wants slightly better health benefits than you were planning to offer? On a business plan, you don’t go into the same amount of detail you put in your tax paperwork at the end of the year when it’s all said and done.
That being said, you can ballpark the excess at between 18% to 26% more, at least according to CNN money:
http://money.cnn.com/2013/02/28/smallbusiness/salary-benefits/
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