The Hidden Costs of Employment
SB Bookkeeping has provided the case studies as listed below:
- 1. Base Salary is normally quoted as the base excluding other costs such as superannuation. For our example SB Bookkeeping will use a base of $50,000.
- 2. In this case employer must pay 9.5% superannuation for all employees earning more than $450 in a calendar month. On a base of $50,000 this would equate to $4,750.
- 3. Annual Leave is normally 4 weeks per year. Remember that you are therefore paying the base of $50,000 for only 48 work weeks per year.
- 4. Public Holidays are usually 10 in Australia each year.
- 5. We should allow 10 days for sick leave per annum so add another 3.85% at $1,925.
- 6. Workers Compensation Insurance can vary broadly depending on the risk of the industry. The rate is fixed each year by statute and cant be negotiated.
- 7. Payroll Tax. is a state government tax that is levied once your annual payroll (including super) exceeds a certain threshold.
- 8. Recruitment cost, average cost of recruiting an employee is around $5,000. This includes recruitment costs, down-time and training.
While these apply to all aspects of employment within your company, it demonstrates why it is worth looking at areas within your company which may be suited to outsourcing to a specialist provider. One of these areas is Bookkeeping Services. At SB Bookkeeping we can surely help, Contact Us Now.