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Working out "gross" hourly rate?

Discussion in 'Small Business' started by Propagate, 4th May, 2016.

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  1. Propagate

    Propagate Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    282
    Location:
    Melbourne
    Just working backwards to get to my break-even costs....

    Say Joe Bloggs has a staff hourly rate of $20 per hour (gross, ie he pays payg tax out of that).

    He's paid that rate for 40 hours per week, 52 weeks per year (4 weeks of the 52 are holiday pay, paid out at the same $20ph for 40 hours a week).

    He accrues sick pay at the rate of about 3.5 hours per fortnight.

    How much does he cost his employer per hour?

    I need to add to his $20:-

    Super
    Sick pay allowance
    Leave
    Payroll tax?
    Work Cover?
    Long service leave

    Any other taxes or allowances I need to put aside per hour to work out what he actually costs me per hour?

    Cheers.
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Location:
    Sydney or NSW or Australia
    Which industry?
    Is there leave loading?
    Bereavement/Compassionate leave?
    POETS day?
     
  3. Propagate

    Propagate Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    282
    Location:
    Melbourne
    Structural Steel Drafting, (usual private contract with the staff, no leave loading or RDO's)
    Yes, compassionate leave - 3 days per year
    No POETS day but may have a bring your dog to work day ;-)
     
  4. EN710

    EN710 Well-Known Member

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    Location:
    NSW
    I don't know the other allowances apart from super and leave
    I assume weekly work hour is set to 40 hours. Yearly salary for 52 weeks with up to 46 weeks active working (4 weeks annual leave + 2 weeks sick leave)

    (40*52*20*1.095)/(46*40) = $24.75
     
  5. pinkboy

    pinkboy Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    909
    Location:
    Mackay, Qld
    I have a very comprehensive spreadsheet that I can send to you (or anyone else) that calculates hourly rate. It has instructions, but for gross, you just need to put $0 in the profit line. Flick me a PM with an email and Ill send it through along with how I determine my hourly rates for my guys on site.

    You will be surprised - Id bet close to $40 with all the whiz bangs!

    pinkboy
     
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