What's in a Paycheck?

Employment costs are higher than an employee’s hourly wage. To see an example of how a company spends on one employee, take a look at the below sample. Give XL Staffing a call to learn how we can help you cut your costs.

$16.00 Is Actually $31.61? Let's See:

Your Position: Carpenter
Hourly: $16.00 x 40 hrs/week x 52 weeks
= $ 33,280 yr.
Payroll Burden
FICA (6.2%)
$ 2,063.36
Medicare (1.45%)
$ 482.56
Fed. Unemployment (0.8% to $7,000)
$ 56.00
State Unemployment (3.75%)
$ 1,248.00
CA DI (0 %)
$ 0.00
Worker’s Comp. Ins. (Your code 5645 & rate 28%)
$ 9,318.40
Mandatory Pre-Paid Medical ($200 per-month x 12 months)
$ 2,400.00
Fringe Benefits Burden (National average is 9.1%) Including bonuses, profit sharing, etc. Excludes vacations, holidays, sick days, etc.
$ 3,028.48
Administrative Cost Burden (Including all HR functions and paperwork) (National Average is 10%)
$ 3,328.00
Total Cost of Employee Per Year
$55,204.80
Productive Time
Total Productive Time Available:
40 hrs./Week x 52 Weeks = 2,080 hours
Less Non-Productive Time
Holidays
10 x 8 hrs. = 80
Vacations
10 x 8 hrs. = 80
Sick Days
5 x 8 hrs. = 40
Personal Days
2 x 8 hrs. = 16
Sub-total: 216 hours
Additional Non-Productive Time:
(National average is 30 mins. for full-time employees)
30 minutes per day x 5 days x 47 weeks
= 117.50 hours
Total Non-Productive Time
= 333.50 hours
Total Productive Time Realized (B)
= 1,746.5 hours
Take the Total Cost of Employee (A) and divide by Total Productive Time Realized (B). This is your actual hourly cost at 100% efficiency.
$ 31.61

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