When you hire an employee in a traditional relationship, you are committed to more than the base amount salary the employee receives. You must pay employee taxes, overheads for space and equipment as well as supplies, benefits and pay for time not worked – such as during vacations, holidays and sick time, and even breaks and lunches. If you experience high turnover in the position, you will also realise considerable cost in recruiting, hiring, training, record maintenance and even severance pay.
Your employee costs would break down something like this:
|Employee costs||Part-time (20 hr/wk)|
|Base salary (approximately €18.50/hour)||€ 18,800|
|Benefits (15% of salary)||€ 2,820|
|Payment for time not worked (13%)||€ 2,444|
|Payroll taxes (12%)||€ 2,256|
|Administrative costs (7%)||€ 1,316|
|Equipment/Equipment Maintenance/Supplies||€ 3,900|
|Rent of space for in-house employee||€ 2,500|
|Annual Total:||€ 34,036|
However, if you hire a Bookkeeping Service at €40/hour, for an average of 3 hours a week, you avoid the expenses involved with having an employee. You don’t have any training or payroll concerns and you do not lose any time for holiday or sick leave.
Costs for a Beancounter breaks down something like this:
|Beancounters.ie bookkeeper costs||Total fee|
|3 hrs/wk @ €40 hourly||€ 6,240|
|Payment for time not worked||€ 0|
|Payroll taxes||€ 0|
|Administrative costs||€ 0|
|Equipment/Equipment Maintenance/Supplies||€ 0|
|Rental of space for in-house work||€ 0|
|Annual Total||€ 6,240|
Hiring a Beancounter will save you money! Call us now to see how much you can save: 01 254 9670.