1.  Employee Expenses
Salary & Benefits Emp1 Emp2 Emp3 MBW Cost
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Basic Annual Salary
$25,000
$30,000
$ $18,000
Social Security (6.2%) $1,550 $1,860 $
Medicare (1.45%) $363 $435 $
Benefits  %
$6,250
$7,500
$
Bonus  %
$0
$0
$
Gross Annual Salary
$33,163
$39,795
$18,000
Computer Hardware & Software
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Annual Allowance
For Hardware
$1,200 $1,200 $
Annual Allowance
For Software
$1,200 $1,200 $
Total Allowance For Both $2,400 $2,400
Office Space & Supervisory Cost
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Usable Space 100 100    sq. ft
Rentable Factor 14% 14%    %
Gross Rentable Space 114 114
Monthly Lease $2.50 $2.50 $
Annual Office
Space Expense
$3,420 $3,420
Supervisory Cost
(20% of Basic Annual Salary)
$5,000 $6,000 $
Regulatory Compliance - Supervisory & Training
$2,500
$2,500
$
Summary
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Total Employee Expense
(per year)
$46,483
$54,115
$18,000
 
2.  Utilization & Hourly Rate
Gross Hours Emp1 Emp2 Emp3 MBW Cost
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Gross Hours 2,080 2,080 hours 2,080
PTO(Paid Time Off)
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Vacation 80 80 hours 2,080
Holidays, Sick, Personal 120 120 hours
Total PTO 200 200
Gross Work Hours 1,880 1,880
2,080
Overhead
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Overhead (Internet, Phone, etc,) 10% 10% %
Employee Downtime 10% 10% %
Total Overhead & Downtime 376 376
Other Deductions
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Training 80 80 hours
Regulatory Compliance 80 80 hours
Summary
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Hourly Rate Calculation
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Total Employee Expense
$46,483
$54,115
   $18,000
Total Productive Hours 1,344 1,344
   2,080
Effective Hourly Rate
$35
$40
   $8.65
Disclaimer
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We invite you to use this tool and adjust the variable settings to best fit your particular work place in an effort to approximate the effective hourly rate per employee.
Note:
Employee 1 & 2 are given as examples. Employee 3 can be changed as needed and the numbers will calculate automatically.