| "body"> | | | | 4. Workers' Compensation 27.51 |
| I recently spoke with a small Georgia business owner | | | | 5. Administrative Costs 4.50 |
| who owns a remodeling business. He's lived and | | | | Labor Costs = $42.46 |
| worked in the same town for years now. Although I | | | | The costs were to the penny, except for the |
| don't know his reputation first-hand, the fact that | | | | administrative burden. This was another area of |
| he's been in business for over 20 years in this town | | | | distraction, frustration and regular bills. Although it was |
| tells me he's probably doing something right. | | | | tough to really know what his true costs had been, |
| He had recently been audited and, well, let's just say | | | | we used a Department of Labor statistic as an |
| it was more than shocking. | | | | independent number. The statistic states that a |
| In fact, he was flat out livid about how much his | | | | typical business spends 4.5% of gross payroll to |
| workers' compensation cost. We began talking about | | | | manage payroll, workers' compensation (risk |
| his business and how many employees he had, what | | | | management), government compliance, human |
| their annual pay rates were, etc., trying to get to the | | | | resource and employee benefit administration. |
| bottom of what went wrong. His payroll and | | | | After he was able to view his true labor burden rate, |
| bookkeeping work was handled by his wife - with | | | | he was both excited and disappointed. Excited that |
| help from an accountant. | | | | he could now actually bid future projects knowing |
| Unfortunately, I knew pretty quickly that this was a | | | | exactly what his costs would be- disappointed that |
| story that I had heard way too often. A story of a | | | | he hadn't taken the time to put this formula into his |
| small business owner who does great work and has | | | | bids in the past. |
| a good reputation- but never really gets to see the | | | | One of many benefits employee leasing companies |
| fruits of his labor because of the lack of attention he | | | | provide are payroll reports that show you all of your |
| pays to the other areas of running his business. | | | | labor costs. Whether you're selling food, pools or in |
| The more we uncovered his deep-rooted problems, | | | | the case of Charlie - remodeling services, if you don't |
| he realized it was well past the time to stop taking | | | | know what your costs are, how can you know if |
| on jobs until he knew if they were profitable jobs to | | | | you're making a profit, breaking even or even worse, |
| take. | | | | losing money? |
| We begin adding up the numbers so he could see for | | | | For almost 30 years now, employee leasing services |
| himself. For every $100 dollars in payroll, his actually | | | | have been helping small business owners save money |
| labor burden was $142.46. Here's how we arrived at | | | | on workers' compensation, reduce payroll |
| that number. | | | | administrative hassles and have given back employers |
| 1. FICA - Matching Social Security & Medicare | | | | their time to concentrate on income producing ideas. |
| 7.65 | | | | When you're ready to learn more about what |
| 2. FUTA - Federal Unemployment Tax .80 | | | | employee leasing services can do for your business, |
| 3. SUTA - State Unemployment Tax 2.00 | | | | give us call. Our information is free and helpful. |