Real life cost of employing staff

[Dave177]

Looking to find out the costs of putting someone "on the books" as opposed to continuing paying them as Self Employed contractors. So just wondering about the following;

As a rough percentage how much more does it cost employers?

what "other" costs have people found come into it?

 

Cheers

David

[Stephen Blair]

Wage + holidays + insurance for them + Insurance for you + clothing + PPE + vehicle insurance extras + accounting fees + PAYE contributions + a lot of stress + you need to make some money off them + 3 months full and 3 months half pay if their sick.

 

Realistically there hourly rate x 4 is what you need to charge them out at.

[Shane]

In my distant past as an IT specialist the companies used to estimate 50% on costs to employ someone. They could therefore pay contractors 40-50% more than employees AND have the advantage of cost-free culling when things got bad.

[Gareth Dalzell]

Whatever your total 52 weeks a year costs are, we would divide by around 42-45 being the total number of likely productive weeks in a year an employee will yield. After holidays, lost days, sick days, unproductive days, training days etc etc.....

[beechwood]

In my experience costs 25% more to have someone on the books as opposed to self employed.

 

 

 

You can't alway compete on price but you can on quality

[Ian C]

In my experience costs 25% more to have someone on the books as opposed to self employed.

 

 

 

You can't alway compete on price but you can on quality

 

Not Really, a SE man will cost about the same over the year than an employed man but in different ways,having a regular employee does make life so much easier for planning the weeks ahead.

[likeitorlumpit]

If you are paying £10 per hour you need to charge £30 plus a bit.

You don't have to pay sick pay at normal rates (make sure this is mentioned in the contract) but get involved in SSP. Not much and government pays you back. lets face it, you'll be making NI contributions on top of the employees contributions so it's nice to get something back.

You'd be surprised how healthy people are when they don't have paid days for being 'poorly'. Personally, I think it makes them better people.

[Paul Jenks]

Pretty well what the last 2 said.

A lot depends on your outlook and mindset.

I'm not a big fan of sub-contractors, though I do employ a couple from time to time when we are inundated with work or have holidays to cover. I also don't like the way many companies avoid tax by using guys and girls as sub-contractors even though they are technically employed.

If you're committed to building a business that'll support you and your family and your future, then why wouldn't you commit to your work colleagues by giving them some stability and security. Why would anyone want to get rid of people when work gets tight. Work harder to get work in. Commit to people and they'll commit to you.

Costs vary, though you generally get what you pay for. Speak to HMRC and they'll give you the information. Payroll can be a ball-ache as can HR, contracts, holidays, PPE, employer's NI and all the other stuff. It's part of employing so deal with it and look at what you want to achieve. Don't let barriers to thinking get in the way.

If you have someone who can help with your first foray into payroll for little or no money it makes it easier. It's daunting when you have hand over the first paycheque. When you get to £30k+ a month in payroll it's already someone else's problem as you have too many other things to do.

[Gareth Dalzell]

Don't get to hung up on the payroll aspects of employing someone. If it's not your thing you can get a payroll bureau to process and do you yearly returns.

[Warners]

Pretty well what the last 2 said.

A lot depends on your outlook and mindset.

I'm not a big fan of sub-contractors, though I do employ a couple from time to time when we are inundated with work or have holidays to cover. I also don't like the way many companies avoid tax by using guys and girls as sub-contractors even though they are technically employed.

If you're committed to building a business that'll support you and your family and your future, then why wouldn't you commit to your work colleagues by giving them some stability and security. Why would anyone want to get rid of people when work gets tight. Work harder to get work in. Commit to people and they'll commit to you.

Costs vary, though you generally get what you pay for. Speak to HMRC and they'll give you the information. Payroll can be a ball-ache as can HR, contracts, holidays, PPE, employer's NI and all the other stuff. It's part of employing so deal with it and look at what you want to achieve. Don't let barriers to thinking get in the way.

If you have someone who can help with your first foray into payroll for little or no money it makes it easier. It's daunting when you have hand over the first paycheque. When you get to £30k+ a month in payroll it's already someone else's problem as you have too many other things to do.

 

As above really. if administation is a worry look for a local book keeper to help with payroll. concentrate on keeping your guys busy and let someone else deal with the paperwork.