Employee Burden Cost

This is Tom.

His gross compensations is $17/hour or $35,350 per year. However, there are a variety of additional annual costs attached to the cost of hiring him.

Average Standard Costs:

Employees cost far more than just the hourly wages or salaries they’re paid. How? Because what they actually cost an employer is their fully-burdened labor cost, which includes subsidized health insurance, annual bonuses, payroll taxes, 401(k)s, workers’ compensation insurance, and more. And shockingly, these fully-burdened costs can nearly double their initial salary or hourly wage.

12,665

Health Insurance

1,415

Annual Bonus

2,755

Payroll Taxes

1,662

401K

3,000

Workers’ Compensation Insurance

Additional Costs:

The costs don’t stop there. In fact, there are countless seemingly petty expenses incurred with employees. And those expenses can add up – and quickly.

300

Training and Professional Development

150

Coffee

100

Anniversary/ Birthday

750

Phone/Internet

6,000

Equipment and Office Space

300

Office Supplies

$64,447

Your Actual Annual Cost to Hire Tom

What else could you be doing with that extra money? Find out how BELAY can help your organization.

Get Started

Additional costs vary by Region, Industry, or Company

https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/employers-hold-down-health-plan-costs-for-2019.aspx

https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/employees-high-hopes-for-bonuses.aspx

https://gusto.com/tools/employer-tax-calculator

https://www.cnbc.com/2019/06/10/this-is-the-average-401k-employer-match.html

https://www.dol.gov/owcp/dfec/regs/compliance/wc.htm