How to estimate costs of employees

KarrieF

Hi.

I am trying to work out the cost of employees for my business plan. Aside from wages and employers PRSI, are there any other "hidden" costs that need to be included?

I have read in a previous post here that the cost of an employee is approx 20% of their salary, so I have included this in my business plan, but I'm wondering if I can break it down even more, so I can have a proper answer if asekd about the figure, rather than just saying I heard a good rule of thumb is to multiply the salary by 1.2!

Do part/full time employees have to get paid holidays? The business would be retail, small cafe, so I'm not sure what exactly is applicable.

Thanks in advance,
K

jimmii

Hidden costs such as breakages, drinks consumed while working, lateness etc? Sounds like its going to be next to impossible to work out an exact number without doing a study on your employees in your business. Its going to be massively variable from one employee to the next even in the same company and position. Also the more you pay the staff the lower the "cost" percentage is going to be.

Bandara

Add 8% for their holiday entitlements

8 hours in every 100 hours worked

Peterdalkey

+ employers liability insurance!

Add 20% and you are good!

sawdoubters

just double what you pay them,if you pay them 15 they cost 30,you would bill out at 60

Peterdalkey

sawdoubters wrote: »

just double what you pay them,if you pay them 15 they cost 30,you would bill out at 60

OP is not selling time!!

srsly78

In offices they often count the cost of their "desk" in with the total employee cost. Adds another 50% on in some cases. Covers rent+electricity+computer maintenance etc. Some jobs like trading make the employee rent their own desk

Peterdalkey

srsly78 wrote: »

In offices they often count the cost of their "desk" in with the total employee cost. Adds another 50% on in some cases. Covers rent+electricity+computer maintenance etc. Some jobs like trading make the employee rent their own desk

simply not relevant to the case of the OP, a cafe!!

Voltex

If you are going to be open Sundays you have a premium rate to pay.

Peterdalkey

Voltex wrote: »

If you are going to be open Sundays you have a premium rate to pay.

JLC Sunday rates correct information here http://www.citizensinformation.ie/en/employment/employment_rights_and_conditions/industrial_relations_and_trade_unions/joint_labour_committees.html

Voltex

Peterdalkey wrote: »

JLC Sunday rates correct information here http://www.citizensinformation.ie/en/employment/employment_rights_and_conditions/industrial_relations_and_trade_unions/joint_labour_committees.html

Not the JLC rate...but still a "premium" Sunday rate.
http://www.lrc.ie/viewdoc.asp?DocID=109

Peterdalkey

not necessarily so as per http://www.basis.ie/home/home.jsp?pcategory=12823&ecategory=12917&doclistid=12924&sectionpage=10339&language=EN&page=&link=link001&doc=10775&logname=Code%20of%20Practice%20for%20Sunday%20Working&urlcode=

scwazrh

If someone is employed full or part time , and the original hours given include Sunday ! Do you have to pay additional over normal rate?

Bandara

Voltex wrote: »

Not the JLC rate...but still a "premium" Sunday rate.
http://www.lrc.ie/viewdoc.asp?DocID=109

Pay them €8.65 a hour and €9 Sunday

KarrieF

Thanks for the replies. I hadnt realised there was employers liability insurance, thats a good one to know. Also didnt really factor in higher costs on a Sunday. Thanks all!