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What percentage "uplift" to salaries for taxes & benfits?

Hi. I need to put together a budget for a project we are bidding on. I know the target salaries for each position, but do not know what % "uplift" to add the a salaries for employer taxes and benefits. The new employees will be in CO, MA and NC. Your input on this will be greatly appreciated. Thank you in advance. Jim Cannon

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

Jim, I've never heard the term "uplift". If you're talking about a percentage that should take into effect FUTA, SUTA, FICA, MED and possibly health care, I've used 25%.

What works better is to actually figure out the numbers - more accurate and use a standard cost for single life for employees (unless the company is paying more).

Jim Cannon
Title: Co-Founder & CEO
Company: SalesOps Analytics LLC
(Co-Founder & CEO, SalesOps Analytics LLC) |

Thank you Wayne.

Anonymous
(Regulatory Reporting Manager) |

Up to 35% of salaries for taxes and benefits is common as far as I know.

Jim Cannon
Title: Co-Founder & CEO
Company: SalesOps Analytics LLC
(Co-Founder & CEO, SalesOps Analytics LLC) |

Thank you.

Jim Cannon
Title: Co-Founder & CEO
Company: SalesOps Analytics LLC
(Co-Founder & CEO, SalesOps Analytics LLC) |

Excellent suggestion. Thank you Emerson.

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

Depends on the "benefits". Of course the more benefits, the higher the percentage. I would ask your current payroll/benefits provider (if any). If you know a PEO rep, they can provide a very close estimate based on the benefits you plan on having.

I have used 25%-30%

Lyle Newkirk
Title: CFO
Company: Corrigo Incorporated
(CFO, Corrigo Incorporated) |

I always try to figure out the percentage based on historical trends. Over several technology companies the range has been 20-25%. 401(k) match or lack thereof can move the number a few points.
It is a very important metric and one that all of your operating managers should know off the top of their head.

Jim Cannon
Title: Co-Founder & CEO
Company: SalesOps Analytics LLC
(Co-Founder & CEO, SalesOps Analytics LLC) |

Agree. Thank you Lyle.

Jim Cannon
Title: Co-Founder & CEO
Company: SalesOps Analytics LLC
(Co-Founder & CEO, SalesOps Analytics LLC) |

Thank you Bob. Excellent point about % varies with pay level. Most of the hires will be high price software developers (100K +/-) to attract will need a good benefit package.

Bob Low
Title: Principal
Company: Perron & Low
(Principal, Perron & Low) |

As others point out, the % can vary depending on what benefits you offer. Also, for lower paid employees, a fixed cost fringe like health insurance will be a higher % of wages than for highly compensated employees. If you will be billing by the hour/day, then also factor in vacations and holidays.

elise lacher
Title: consultant
Company: strategic veterinary consulting
(consultant, strategic veterinary consulting) |

While there are benchmarks, I always like to know the culture and definition of these employees. Are they going to be permanent employees who get the perks of working for the company? IF so, you should have some idea of what the benefit package is. If they are temporary employees, simply along for the project, the benefits will be much less so just talking regulatory benefits like taxes, wc, etc.

Jim Cannon
Title: Co-Founder & CEO
Company: SalesOps Analytics LLC
(Co-Founder & CEO, SalesOps Analytics LLC) |

Once again, excellent input, thank you Elise. We plan for the hires to be employees - hopefully long term employees, so benefit package will be important to attract and keep them.

Edward Thill
Title: VP - Finance & Operations
Company: Performance Trust
(VP - Finance & Operations, Performance Trust) |

If you have a large homogenous employee base, you may get away with a standard % but as others have pointed out, benefits (especially healthcare) will comprise a much larger % for lower earners. We are a trading firm with a large disparity in compensation for our customer-facing employees compared to our back office staff. For budget purposes, we delineate fixed benefits (healthcare, LTD, etc) vs compensation-dependent variable costs (taxes, 401k match, etc).

Jim Cannon
Title: Co-Founder & CEO
Company: SalesOps Analytics LLC
(Co-Founder & CEO, SalesOps Analytics LLC) |

Thanks Ed.

Jim Cannon
Title: Co-Founder & CEO
Company: SalesOps Analytics LLC
(Co-Founder & CEO, SalesOps Analytics LLC) |

Thank you Nancy.

What think I will do at this stage is to add all the annual salaries and then add 30% to the total. It lacks precision, but give us a understand of the $ will need which is what we looking for at this point.

Thanks you to very one who responded to by question. Your advice and help is VERY much appreciated. Once again thank you.

Nancy Ouellette
Title: AVP Infrastructure Financial Management
Company: MetLife
(AVP Infrastructure Financial Management, MetLife) |

I've always used a 24-26% range factor. It would vary based on tapering which happens throughout the year based on magnitude of pay and meeting certain tax thresholds.

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