Part 4 of 5: The Administrative Infrastructure Tax
You’re paying for more than just employees – you’re paying for the infrastructure to manage them.
📊 The Hidden Overhead
- Payroll processing: $1,000-$2,300 per employee annually
- Benefits administration: Managing enrollments, FSA/HSA, insurance claims: $150-$250 annually
- HR compliance: I-9, FMLA, ACA reporting, wage and hour laws: $100-$200 annually
- Time tracking systems: $60-$120 annually
- HR software & support: Allocated per employee: $100-$200 annually
Total administrative overhead: $1,640 annually
Per Hour Impact: $0.79/hour
This is pure overhead – you’re paying this whether employees are productive or not.
The Full Picture (Before Paid Leave & Retirement):
- Base pay: $21.00/hour
- Day 1 (payroll taxes & workers’ comp): +$1.82/hour
- Day 2 (health insurance): +$4.81/hour
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Day 3 (recruiting): +$1.92/ hour
- Day 4 (administrative overhead): +$0.79/hour
- Your actual Year One cost: $30.34/hour
That’s 45% above the base pay rate – and we haven’t even added paid time off or retirement contributions.
The InnoSource Advantage
InnoSource eliminates all administrative infrastructure costs. No payroll processing fees, no HR software, no benefits administration burden, no compliance management. We do everything for less than 50% above the pay rate.
Contact us at [email protected] to eliminate administrative overhead entirely.
➡️ Tomorrow: The Complete Picture 📈