[UK / England Only] - True cost of an employee

Can't really go into details why I need this, but does anyone know what the true cost of an employee is to the company ?

If someone earns £65k - 20 days of holiday plus 8 BHs ... Would that be approx. double ? How would you calculate it ?

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Comments

thronetm

I don't understand what you mean

jibbajabba

thronetm wrote: »

I don't understand what you mean

Then you won't be able to answer

Basically if you are a permanent employee on a £65k salary - you will likely cost the company £120k

Why ? Because you get paid when you don't work as well for example, like holiday, bank holiday, sick days .. You could even drill down to the costs of HR / Payroll, electricity / software licenses / PC / Laptop. Or even further to even calculate unproductive time / browsing for nonsense, youtube, chatting and the list goes on.

There are numerous calculators on the net but they do take things into consideration I don't need - I am really just after

a. Company pays X
b. Y days of holiday
c. Z days of bank holiday
d. Additional taxes etc. (Class 1 NICs)

= total cost

Just as an example - Class 1 NICs is 13.8% - so your employer will have to pay £9k on taxes on top of your salary ... SO without anything above - you already cost £74k

The more I write here the more I think I have answered my own question .....

thronetm

Lol, I wouldn't go as far as saying 120k. If you're paid an annual salary of 65k that is holidays/bank holidays included and sick pay is generally short before you either get verbal warnings or unpaid sick.

PCs/Laptops and software licenses generally would last you 3 years at least in my company.

Not sure what you mean by taxes as it's you that pays the taxes not the company, which is showed on your Payslip. Taxes are taken out of your overall salary, the company don't pay extra on any other form of tax.

jibbajabba

thronetm wrote: »

the company don't pay extra on any other form of tax.

You pay PAYE - the company still has to pay additional (Class 1 NIC) taxes and they apply if you as employee earn more than the ET (Earnings Threshold) - Your taxes are the "Primary Contributions" whereas the employer's are "Secondary Contributions".