Hello Bill & PIC.ers,


>On Nov 23, 2004, at 8:57 AM, Olin Lathrop wrote:
>
>> A good rule of thumb is that the total compensation cost and directly
>> related expenses for an employee is 15% above what is actually
>> paid to the employee.
>
>Really?  FICA by itself is 6+ percent, and there's the employer side
>contributions to medicare, disability, medical, dental, and life
>insurance.  That'd get up to about 15% of low-end employees pretty 
>quick,
>
>wouldn't it?  Then there's vacation/sick leave (5 weeks out of 52 is 
>almost
>10 percent by itself), retirement benefits (if any), and overhead costs 
>(HR,
>payroll,  etc)
>
>I thought we used 50% as a guideline.  Or maybe it was >$50k/employee?  

Twenty years ago, in another country (South Africa), in another life
(Coal Mine management) I was tasked with budgeting personnel
costs for a start-up new mine.

HR dept. advised me to use a figure of 35% for `consequential cost'
of employees, above the figure for their bare salaries.
This worked across the board, from the lowliest miner to the managers.
In practice, it was an accurate figure.


    best regards,   John

email from the desk of John Sanderson.
JS Controls, PO Box 1887, Boksburg 1460, Rep. of S. Africa.
Tel/Fax 011 893 4154, 
Cell 082 741 6275,
web    http://www.jscontrols.co.za
Manufacturer & purveyor of laboratory force testing apparatus &
related products & services.

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