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How much does an employer pay for a W2 Full Time Employee?
- greenyoda 11y agoThis analysis doesn't include the cost of the infrastructure to support the full time employee: rent for office space, computer equipment, IT support, etc. None of these costs would be incurred directly by the employer if they hired an independent contractor who worked remotely. So they're definitely part of the overhead cost of a full time employee. (They're also not fixed costs - the amount of office space you need to rent depends on the number of people you employ. So the cost of office space is definitely part the the cost of hiring an employee.) Strangely, the article accounts for three paid sick days per employee, but not for paid vacation days or holidays, which most employees receive. These are also something the company would pay the cost of for an employee but not for a independent contractor (who only bills for the actual number of working days).
- deleted 11y ago[deleted]
- hwstar 11y agoThe article states that the costs are for a California Employee. In California employers must supply 3 days of sick leave, so therefore its a mandated expense. The number of vacation days isn't mandated California state by law (yet). Some jobs get no vacation allocation (e.g. fast food, retail) Another example where vacation is offered as a benefit is tech. Tech jobs only offer vacation as a benefit because it would be difficult to recruit any decent employee without it.