Statutory taxes (FICA, FUTA, SUTA)
FICA and Medicare taxes are fixed at a total rate of 7.65%. Federal unemployment is also fixed but a few states have a higher rate. Your state unemployment rate is variable, depending on your claims experience. Your rate is listed on your quarterly state unemployment form.
Overhead and administration cost
- Calculation and reporting of gross pay
- Deduct and remit employee payroll taxes, employee garnishments and insurance premiums
- Prepare and sign payroll checks
- Transfer funds to payroll and tax account for 940, 941 and UTC-6
- Costs of payroll checks, bank fees, replacement checks and check reconciliation
- Track sick, personal and vacation time
- Prepare monthly, quarterly, and annual payroll reports
- Prepare and mail W-2s
- Handle accounting and audit fees
- Handle tax compliance and late fees
- Maintain Workers’ Compensation
- Shop for Workers’ Compensation Insurance, pay deposit, monthly billing and self audits
- Prepare and file final report of injury
- Report and process claims and related paperwork
- Administer claims to protect the experience modifier or absorb cost increases due to Workers’ Compensation
- Appear at Workers’ Compensation hearings
- Administer safety program and drug-free programs
- Comply with OSHA
- Provide employment and income verification
- Prepare for annual Workers’ Compensation audits
- Compliance with Fair Labor Standards Act
- Keep abreast of changing HR issues, such as litigation trends, Title VII, EEOC, ADA, INS regulations, etc.
- Create legal and compliant employee handbooks
- Provide compliant job descriptions and employee policies
- Shop, compare and negotiate health and welfare, dental, and supplemental insurance including life, AD&D, etc.
- Process unemployment claims and appear at hearings
- Administer the retirement plan, maintain compliance as a fiduciary
- Administer COBRA benefits
- Conduct investigations of employee complaints and disputes
Although is can be challenging to calculate your employment-related administration cost, an accurate estimate is possible. In order to prepare an accurate financial comparison, select the appropriate percentage of employment-related administrative cost form the table below. Keep in mind that managers spend approximately 23% of their time on employment-related administration.
| - | ||||
|---|---|---|---|---|
| Number of employees | 1-9 | 10-24 | 25-49 | 50+ |
| Overhead cost | 8-12% | 4-8% | 3-6% | 2-5% |
Workers' Compensation Cost
Rates for workers' compensation are variable. They vary with they type of work your employees perform, your experience modifier and your discounts, Your rates are found on your workers' compensation policy.
Why Choose PEO Source?
Greg Yakoumis Owner, Founder
We’re all about making the right connection, and we believe you deserve a custom solution to all the payroll, workers comp, liability and compliance issues you face.
At PEO Source, we work with you to assess your unique situation and find a vendor whose strengths fit your needs. To us, you’re more than a client.
We believe in sharing ideas via good, old-fashioned conversation and use that to determine if we’re the right fit for your needs.
