What does this employee actually cost me?
Their hourly wage is only the start. Add the real employment and operating costs, then see what this person costs for every hour you can actually bill to a customer.
What do you pay them?
Enter the ordinary hourly wage before employer super and other on-costs.
Use the number of weeks you expect to pay this person during the year.
Editable so you can use the rate that applies to your circumstances.
Employment on-costs
Enter an approximate percentage of wages if applicable.
Optional allowance for other employment costs calculated against wages.
Optional fixed annual employment costs not already included above.
What do they need to do the job?
Add the annual business costs you expect to allocate to this employee. Leave anything that does not apply as $0.
How much of their time can you actually bill?
Allow for travel, training, cleaning, admin, leave, downtime, meetings and other paid time
you cannot directly invoice to a customer.
Paid time is not the same as billable time.
If you pay someone for 1,976 hours in a year but only 70% can be charged to customers,
their cost has to be recovered across far fewer billable hours.
What do you charge for their time?
Enter the hourly amount your business charges for this employee's work.