Originally Posted by
Frank Hagan
Benefits and taxes will be more than $3 per hour. Usually, you use an adder of 25 to 50% above the wage you pay. The employer's match on social security is $1.05 on $14 per hour (probably more ... I just did 7.5% and I think the rate is something like 7.85%). The health care insurance cost averaged $12,100 per employee in 2007 (for an employee and three dependents), and companies typically pay about 75 - 80% of that; that's $4.65 per hour right there ($12,100 / 2080 hours * .80). You have $5.70 added on, more than a third, with just two of the common benefits American workers have. And that's not including vacation, sick days, employer matching of 401k, worker's compensation contributions, etc.