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There isn't as much as people bitch about, generally speaking you have a few items: - FICA payroll tax - this is US wide, so not really more expensive in CA. -
by ryanobjc 10y ago
There isn't as much as people bitch about, generally speaking you have a few items:
- FICA payroll tax - this is US wide, so not really more expensive in CA.
- CA state payroll tax, this isn't that expensive, just a few percent.
- Workers comp, could be cheaper in other states, but coders/office workers have cheap workers comp.
- Health insurance, maybe a bit more expensive in CA
Basically hiring people isn't expensive because of the taxes, but because of benefits and just generally having a higher income rate. In my experience it was about 10%, and if you add health care another 10-15% so about 25% total overhead.
- bryanlarsen 10y agoAlso office space: 100 - 200 sq.ft. per employee * $75/sq.ft. in SF -> $7k5 - $15k per employee.
- ryanobjc 10y agoThat's like for the MOST expensive office space in SF though. Also that's PER YEAR, not per month. I once rented out office space in SOMA, and it was more like $18 sqft/year. It was cheap and in a shitty place, but still SOMA.
- bryanlarsen 10y agoThat's average price according to http://fortune.com/2016/01/11/san-francisco-office-rent/ http://fortune.com/2016/01/11/san-francisco-office-rent/