Employer Expenses

[rajiv_sublok]

My monthly salary is $5000. My emnployer says , I cost him around $5750. ( 5000 + 750 )

$5000*.15 = 750

My employer says that I cost him around $5750.

He says that he has to pay SS , Medicare, state unemployment, Federal Unemployment.

He has to pay for Liability Insurance Expenses, Payroll Expenses, Office Expenses, Annual Business License , Misc. Expenses.

Is there a formula so that I can calculate my employer fair expenses ? I want my employer to fair to me and at the same time I want to be fair with my employer.

Thanks



P.S. My apologies for posting in this forum. The only reason I posted it here that most of experinced community is on this board,

 

[Edison]

Originally posted by rajiv_sublok
My monthly salary is $5000. My emnployer says , I cost him around $5750. ( 5000 + 750 )

$5000*.15 = 750

My employer says that I cost him around $5750.

He says that he has to pay SS , Medicare, state unemployment, Federal Unemployment.

He has to pay for Liability Insurance Expenses, Payroll Expenses, Office Expenses, Annual Business License , Misc. Expenses.

Is there a formula so that I can calculate my employer fair expenses ? I want my employer to fair to me and at the same time I want to be fair with my employer.

Thanks



P.S. My apologies for posting in this forum. The only reason I posted it here that most of experinced community is on this board,

Your employer is right. Also I heard this 15% formula used by most of the consulting companies in US.

 

[ChinnaKmm]

Yes, In your case (if you are making $5000/month).

Here is the calculation (Not 100% sure).

First 70K salary employer pays (payroll taxes) 11.4% and company expences 3.6%.

11.4% comes down to around 6% after your first 70K salary.

But any way, in your case 11.4% and company expences(3.6%) which I think is reasonable.

 

[sb_tiger]

15% overhead is too very low. Most employers compute at 50-100%. You have to count holidays +admin cost+other perks-401(k) etc etc.
HTH