Part 1 of 5: The Non-Negotiables – Payroll Taxes & Workers’ Comp
Hiring a $21/hour Customer Service Representative?
Your actual cost starts higher than you think – before you even consider benefits or recruitment.
💸 The Legally Required Costs You Can’t Avoid:
- Social Security (FICA): 2% of wages = $2,708 annually ($1.30/hour)
- Medicare: 45% of wages = $633 annually ($0.30/hour)
- Federal Unemployment (FUTA): $42 annually ($0.02/hour)
- State Unemployment (SUTA): Averages $250 annually ($0.12/hour)
- Workers’ Compensation Insurance: Averages $175 annually for CSRs ($0.08/hour)
Your New Hourly Rate: $22.82/hour
That’s $1.82/hour more ($3,786 annually) just for legally required taxes and insurance. You haven’t paid for health insurance, recruitment, or administrative costs yet.
The InnoSource Advantage
InnoSource handles all payroll taxes and workers’ comp compliance across all states. We absorb these costs and complexities, keeping your total employment cost below 50% above the pay rate. In addition, InnoSource handles all unemployment claims!
Contact us at [email protected] to eliminate payroll tax and workers’ comp administration.
➡️ Tomorrow: The Health Insurance Challenge 🏥