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Discussion Forum

employees costs

bronco | Posted in Business on February 7, 2006 04:32am

I do remodeling and trim work alone in the Pittsburgh area and i’m thinking of hiring a helper  a young man willing to make ten dollars aqn hour any ideas what my true cost per hour should be to hire him legitimately?

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Replies

  1. FastEddie | Feb 07, 2006 06:19am | #1

    +30%

     

    "When asked if you can do something, tell'em "Why certainly I can", then get busy and find a way to do it."  T. Roosevelt

  2. User avater
    SamT | Feb 07, 2006 07:22am | #2

    Bronco,

    Here's a free labor burden calculator.

    SamT

  3. User avater
    james | Feb 07, 2006 08:14am | #3

    Rule of thumb being labor cost = wages x2.... then you should add your O&P to arrive at your billout# for the helper...... sometimes easier to just assign a billout # to a skill range though ( helper/laborer = x per hour to customer... skilled labor = x.... journeyman = x ..... foreman = x.... you get the idea )

     

    james 

  4. MisterT | Feb 07, 2006 02:27pm | #4

    Jeff Buck is your boy!!!

    He would love to learn finish carpentry!!!

    10$/hr.

    he'll be happy as a pig in $hit!!!

    contact him thru the forum...

    .

    .

    .

    .

    Doh!! now I dun it...

     

    Mr. T. 

    There's a steering-wheel in me pants and it's driving me nuts!!!

     

    1. User avater
      JeffBuck | Feb 10, 2006 03:55am | #6

      that implies I'm capable of learning ....

      U should be ashamed.

       

      Jeff    Buck Construction

       Artistry In Carpentry

           Pittsburgh Pa

      1. MisterT | Feb 10, 2006 03:12pm | #12

        Sorry...

        what was I thinking... 

        Mr. T. 

        There's a steering-wheel in me pants and it's driving me nuts!!!

         

        1. Catskinner | Feb 10, 2006 04:34pm | #13

          Short Hijack here MisterT,Yesterday I was moving a backhoe, which I rarely do. Usually I'm in a track excavator, a dozer, or a skidsteer. I was noticing how strange it was to be in a machine with a steering wheel. That only happens a few times a year, and it's just weird.So I was thinking about steering wheels, for some reason I thought of your signature line, and I finally got the joke. <G>Thanks for a good laugh at work yesterday.Success is not the key to happiness. Happiness is the key to success.
          -Albert Schweitzer, philosopher, physician, musician, Nobel laureate
          (1875-1965)

          1. MisterT | Feb 10, 2006 11:47pm | #14

            Skinner,

            It helps if you say it in your best Pirate voice!!

            for a dozer operator it would be:

            Theres a Joystick in me pants and its driving me nuts!!!

              

            Mr. T. 

            There's a steering-wheel in me pants and it's driving me nuts!!!

             

          2. Catskinner | Feb 11, 2006 03:55am | #15

            Once again, the best laugh of the day.<<Theres a Joystick in me pants and its driving me nuts!!!>>That is too good. I see the distinct possibility of a few magnetic signs for the side of certain machines. <LOL>Success is not the key to happiness. Happiness is the key to success.
            -Albert Schweitzer, philosopher, physician, musician, Nobel laureate
            (1875-1965)

          3. IdahoDon | Feb 11, 2006 06:00am | #16

            So I was thinking about steering wheels, for some reason I thought of your signature line, and I finally got the joke.

            *grin* 

            Beer was created so carpenters wouldn't rule the world.

  5. User avater
    RichBeckman | Feb 08, 2006 05:40am | #5

    The last time I had an employee, my labor burden was 33.32%.

    But it varies by locality and type of work.

    Mine broke down as follows:

    SSI 7.65%

    Unemployment 3.5%

    Work Comp 15.33%

    Liability Insr 6.84%

    But that was for a roofer in Indiana.

    Rich Beckman

    Another day, another tool.

    1. MikeSmith | Feb 10, 2006 04:09am | #7

      i use  60% for our labor burden.. includes everything i can think of if a guy is on the payroll

      so , your $10 guy will COST you  $16 at my burden

      THEN you markup for your company overhead & profitMike Smith Rhode Island : Design / Build / Repair / Restore

      1. fartherhome | Feb 10, 2006 04:20am | #8

        What is the mark up for overhead and profit?
        mike

        1. MikeSmith | Feb 10, 2006 04:30am | #9

          yeah, right... as if i would publish that.... c'monMike Smith Rhode Island : Design / Build / Repair / Restore

        2. dustinf | Feb 10, 2006 04:34am | #10

          http://forums.taunton.com/tp-breaktime/messages?msg=67959.40

          Start here, and use the search function to work backwards. 

  6. JerraldHayes | Feb 10, 2006 05:43am | #11

    Unfortunately there is no general rule of thumb that will apply to all contractors especially since workers comp rates can vary so much both trade to trade and and state to state so I like Sam's recommendation of using my Burden Cost Calculator to figure out just what your real costs are.

    Also you should really read the February 2002 Journal of Light Construction article Calculating Labor Costs by Shawn McCadden.

    While it's interesting to hear what other peoples burden figures are those numbers are really of no practical help to at all so for your own sake don't shortcut it and use the figures that anybody mentions here. Do yourself a favor and figure it out for yourself.


    View Image

    1. bronco | Feb 11, 2006 06:40am | #17

      thank you very much for the info

      Bronco

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