What Costs Do Employers Have to Pay When Paying Employee Salaries?

Employers pay a substantial amount more than salaries for their employees. The US Bureau of Labor Statistics states that the average employee compensation averaged $37.73 per hour for June 2020. In addition to compensation, employers pay for benefits, along with local, state and federal taxes. You should also consider your expenses to recruit employees, physical workplace space and the cost of equipment such as computers, telephones, printers, copiers, office networks, and voicemail.

You need to find employees somewhere, so you will incur recruiting costs. Even if you decide to make this a do-it-yourself project, you will have some expenses. Whether you own or rent your workspace, you will incur a cost for providing a work area for your employees. This will vary widely based on the location and type of workspace you provide. You'll need to furnish employee space with needed accessories, whether desks or work areas. Also, consider the cost of the equipment you provide for your staff. This is a valid indirect cost, since you wouldn't need extra computers, printers and other equipment if you did not have employees.