Are Payroll Costs Challenging Your Bottom Line?
Qualified workers are not easy to find and they’re expensive to keep. If you haven’t considered having one or several employees on a third-party payroll, let’s walk through some numbers. Many of our clients find that Jeane Thorne payroll services make financial sense for their companies.
What the numbers say
Let’s assume you hire someone at $15 per hour ($31,200 annually). Putting them on the payroll will cost much more than the hourly rate you’re paying them. Between taxes, benefits, insurance, overtime or other expenses, you may end up paying closer to $21.00 an hour. If you also figure in training costs and the time it takes to get a worker up to speed and producing, those numbers grow quickly. We won’t even mention added time spent by supervisors, human resources, and other staff on your new workers.
Hidden costs and liabilities
What about turnover? Employee turnover incurs major cost outlays. Most research estimates that employers spend about 15-16% percent of an employee’s annual salary to replace them (for high-turnover, low-paying jobs). In our example, that could amount to nearly $5,000.00—not to mention any unemployment or workers’ compensation costs.
What does payroll really cost?
|Hourly wage rate||$15.00||71.9%|
|Retirement & savings||$0.65||3.1%|
|Legally required benefits/payroll taxes||$1.90||9.1%|
|Total: Additional cost of $5.86 per hour ($12,189 annually) above the wage rate of $15 per hour||$20.86||100%|
Jeane Thorne Payroll Services
Instead of losing money on in-house workforce overhead, there’s a better alternative. Jeane Thorne can payroll service your employee for less.
We offer your employees medical coverage, paid time off, holiday pay, and other benefits. We also provide management assistance and free software training. If an employee leaves, Jeane Thorne has the resources to quickly and economically replace them.
Don’t let hiring and employment costs take an unexpected chunk out of your budget. Jeane Thorne payroll services let you focus on your business goals instead of staffing issues.
Are you interested in saving time and expense? Contact your Jeane Thorne office today for more details.