The greatest expense for small business owners is often payroll. There can be a lot of additional hidden costs of running a business as well. Did you know that when you hire employees, you have to pay more than just their wages?
Before hiring your first employee or otherwise adding to your staff, it is important for you to understand the true cost of hiring a new employee. An employee costs more than their salary or hourly wage. You also have to pay employer payroll taxes. You might have to pay portions of fringe benefits. And you might provide small extras for your employees, such as free coffee or snacks.
So, can you accurately answer the question, “How much does an employee cost?”
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What does this infographic include?
This infographic uses an example to demonstrate the cost to hire an employee. The scenario uses common extra expenses that come with hiring an employee, such as taxes and benefits. The infographic calculates the real cost of employing the example employee.
The infographic is only one example of how much extra an employee might cost. But, the example is a starting place for you to figure out how much your employees really cost.
So…how much does an employee cost?
