Quote:
Originally Posted by Ashartus
There are probably a lot more expenses than that. Typically an employee costs about 2 to 3 times their salary once you include benefits (presuming you get them), vacation, office space, accounting/human resources time, etc., though it varies depending on what sort of benefits you get. In some businesses insurance can also be a huge cost. I don't know how your company is set up, but most companies have some employees that don't directly bring in money (e.g. administrative support), and their salaries have to come out of the money brought in by those who do. The company probably also needs to pay various external people like their accountant, lawyer, etc. which can add up. Edit - almost forgot one of the biggest, taxes.
25% does sound a bit low, but if the boss is only bringing in $100,000 then there may be a lot of other expenses you aren't aware of.
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we get no benefits. we pay for any blue cross plans out of our own pockets. office space is in a house, that has long been paid off. we have only 3 people in the company, including the boss. sure, taxes, accounting and lawyer have some cost to it. when the boss goes away, my co-worker does any invoicing and accounting, so we all know where the company expenses stand. we're somewhat baffled.