From the course: Revenue, Staffing, and Expense Models Explained
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Employee overhead
From the course: Revenue, Staffing, and Expense Models Explained
Employee overhead
- One last thing that I want to make sure that we do when we're calculating any staffing cost, is we actually have a variable for employee overhead. So we have to take that into account. So every employee that you hire has overhead. They have state taxes, sometimes, federal taxes, almost always, and they have medical and other types of benefits. So you want to make sure you have those variables in. So let's take a look at our staffing variables. So we look down for our model and our model is called staffing. And this is the employee overhead. And what you want to do, is you want to enter in a percentage of salary. So you want to take into account, first of all the employer federal tax. And this is the portion that you pay as an employer, keep that in mind, it's not the total tax that the employee pays, it's just the percentage that the employer pays, now I put that at five percent. Again, it could vary based on the…
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