The greatest expense for small business owners is often payroll. Did you know that when you hire employees, you have to pay more than just their wages?
Before you add 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?”