Employees

There are several costs involved in getting people under your employment. However if you outsource a job to freelancers, the fee you pay does not fall under employee cost but as expenses. There are advantages and disadvantages of getting people under your employment and using freelancers. Th choice is yours.

The main cost of getting people under your employment is their salary or otherwise known as wages or compensation. The typical salaries of different categories of staff can usually be obtained from surveys done by various organizations in your city and or country.

In addition to the salaries, employers may have to pay federal or state taxes or payroll taxes as in known in some countries. For the purpose of this app, the taxes are set at 10% of the salaries of the employees.

There is an additional cost of providing healthcare for employees.  In some countries, it may be in the form of insurance. In others, it can be the direct healthcare cost. For the purpose of this app, the healthcare costs are set at 10% of the salaries of the employees.

Finally as an employer, you may have to jointly contribute to the pension fund of the employees. In the US, this is the 401k plan. In other countries, it may be known as a provident fund. For the purpose of this app, the pension fund contributions are set at 15% of the salaries of the employees.

To simplify matters, the basic version of the StartBizUp app allocates a combined additional amount of 20% of salaries of employees for taxes, insurance, medical and pension costs. (Note that this percentage can be changed in the advanced version of the StartBizUp app.)

Work Out Costs

Amortization and Depreciation

Cost of Goods Sold

Machinery/Equipment and Furniture

Premises

Renovation

Licenses/Patents

Employees

Expenses