Employee Payroll Budgeting And Billing Format
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Example First, calculate hours actually worked in a year: 365 days in a year Less 104 weekend days Less 14 vacation days Less 10 days sick leave Less 8 holiday/personal days Equals 229 work days, or 1,832 hours actually worked in a year Next, calculate annual direct payroll costs: Direct Payroll Categories Wages Medical insurance Dental insurance Retirement benefits Workers’ comp premiums Employer State Unemployment (2.4 ) Employer Federal Unemployment (0.8 on first 7,000) Employer Medicare taxes (1.45 ) Employer Soc Sec taxes (6.2 ) TOTAL ANNUAL DIRECT PAYROLL COSTS Annual Direct Payroll Costs 30,000.00 7,200.00 1,200.00 1,200.00 600.00 720.00 56.00 435.00 1,860.00 43,271.00 Finally, divide the Total Annual Direct Payroll Cost ( 43,271.00) by the Total number of hours actually worked in a year (1,832) to get an hourly rate of 23.62 (This rate will allow you to charge for payroll accruals and have the money available when the employee actually takes sick, vacation, or holiday/comp time leave)..
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