Craft-business Quote by James Dillehay
““When you are calculating an hourly labor rate, add in an additional thirty percent to that rate cover employment taxes.””
About This Quote
Source Book: Business Finance Handbook, 2015
When setting hourly wages, add roughly 30 % to cover employer taxes and related costs.
In simple terms: Add 30 % to hourly pay for taxes.
Key Takeaway
Include tax overhead in labor cost calculations.
Themes
business
finance
human resources
Mood
practical
informative
Type
financial
advisory
When to use this quote
- contract negotiations
- payroll setup
- budget planning
Key Concepts
tax compliance
cost accounting
budgeting
Questions to Reflect On
- How do you verify the correct tax percentage for your location?
- What other costs should be considered?
A Different Perspective
Tax rates vary by jurisdiction, so a flat 30 % may be inaccurate.
