4 ms·
It typically costs an employer double what your pay is, once including benefits, matching social security contributions, etc. So your employer had 10 people it
by JMTQp8lwXL 6y ago
It typically costs an employer double what your pay is, once including benefits, matching social security contributions, etc. So your employer had 10 people it was spending 200k-350k a month on, so 2000k-3500k in expenses, for a product that made 2500k a month.
- deleted 6y ago[deleted]
- mperham 6y ago200k per year * 10 people is $2m/yr. It was making $2.5m/mo.
- misiti3780 6y agoI dont think its double, its more like 1.6
- hansvm 6y agoThat's less true as salaries increase. Some of the increased costs like matching social security contributions or 401k matching are proportional to salary (to the tune of ~8-25% in aggregate depending on a ton of factors), and many of the other large benefits like health care are fixed and consequently take a much lower percentage of a large salary (10% would be a large overestimate for total employer health care costs for the salaries listed). "Double" is a much better (but still probably a bit high unless you're also factoring in HR and other similar overhead) estimate for low-paid white-collar workers. Lots of fields in vast swathes of the country start out around $30k/yr but still have full benefits. A $3k-$15k/yr healthcare benefit on top of the other variable costs can push you close to double.