Ask HN: SF developer burden rate @ $100k?
3 comments
Disclaimer: I am not a CPA or Lawyer so take this advice purely as a guidance based on my own experience of running my company.
The "cost" of an employee generally includes:
Adding all of the above, you are looking at approx 100K + 18,650 = 118,650
I am just giving an estimate here of course. But you hopefully got the idea.
The "cost" of an employee generally includes:
Salary paid
Payroll taxes (employer portion)
Health Insurance premium for the employee
retirement account match
State level disability insurance
Workers compensation
Other costs to manage employee record
Adding all of the above, you are looking at approx 100K + 18,650 = 118,650
I am just giving an estimate here of course. But you hopefully got the idea.
That is very sweet.
In Brazil for every 1000 you pay someone in direct wage, about extra 450 are paid to government (total burden of 1450 to pay 1000 of wage)
Of the 1000 that the "someone" received, about 100 go for your retirement savings, 275 in federal taxes, and about more 100 in other random taxes and fees.
(so yes, this mean that if you theoretically pay 1000 as salary, the person ends with 525, and you pay extra 450 to the government, that ends in total with 925! yay excessive regulation and taxing!!!!)
In Brazil for every 1000 you pay someone in direct wage, about extra 450 are paid to government (total burden of 1450 to pay 1000 of wage)
Of the 1000 that the "someone" received, about 100 go for your retirement savings, 275 in federal taxes, and about more 100 in other random taxes and fees.
(so yes, this mean that if you theoretically pay 1000 as salary, the person ends with 525, and you pay extra 450 to the government, that ends in total with 925! yay excessive regulation and taxing!!!!)
You are wrong, the burden rate in Brazil is 85% of the employee's gross salary. So, using your example:
$1000 salary, $850 goes to the government.
When the employee receives this salary of $1000, about 20% goes to government.
In the end, the government ends up with HALF of what the employee gets paid.
This is why our economy is shitty for entrepreneurs.
$1000 salary, $850 goes to the government.
When the employee receives this salary of $1000, about 20% goes to government.
In the end, the government ends up with HALF of what the employee gets paid.
This is why our economy is shitty for entrepreneurs.
my employer hits my department budget with salary x 1.5 for every employee in my dept. I thought this was too high, so i went to see the controller, who showed me the numbers and indeed it is accurate--in other words, 1.5 x salary is a very good estimate for the actual hard dollar cost to the company for each employee, as a function of his/her salary. The intention was to capture all includes taxes, insurance, office space, hardware, meals, per-seat share of enterprise app licenses, etc.
For example, if I want to pay a dev $100k or $125k, how much will it cost me as a company with Social Security, and payroll taxes, etc. all included?