What Is My Total Payroll Liability?

When hiring a new employee or trying to figure out your overhead costs per employee, the total cost to the business should be considered. If your business offers any employee benefits, those need to be factored into the cost as well. If the business offers a retirement plan, or perks such as a paid parking pass or internet stipend, those should be included as well. Your total payroll liability per employee is calculated as the employee’s gross pay added to the cost of the employer’s portion of social security, medicare, state unemployment, federal unemployment, and any required insurances such as worker’s compensation.

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