Well if you're paying a salary then you automatically have to tack on 15% employment taxes above the cost of salary plus costs of payroll and any benefits. For

Well if you're paying a salary then you automatically have to tack on 15% employment taxes above the cost of salary plus costs of payroll and any benefits. For most employers this falls in the range of 20 - 30%. So that potentially increases your cost from $125 to $162.50. Good luck turning a profit if you ever have to pay them for an hour you're not billing a client for. (In most consultancies that would be about 30 - 40% of the employee's hours.)