Don’t forget that an employee costs your business more than just their salary. For example, if you decide to hire someone for 10 hours a week at a rate of $10 per hour, did you know that one pay period will end up costing you approximately $120.45?
Here’s the breakdown: $100.00
Employer Payroll taxes $12.00
Workman’s Compensation (12%) $0.60
FUTA (1st $7,000) $0.20
SUTA (1st $8,500) $120.45
Remember, this is a simple example and doesn’t include possible local or other taxes. You need to make sure you’re educated about all payroll taxes before you hire.
This is a prime example why your small business needs a bookkeeper like me! Let me look after the business of your business so you can get on with making your business money!