My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Finance

How do you evaluate the cost of hiring a new employee?

Guest Writer
min read
Opinions expressed by Entrepreneur contributors are their own.
Generally, if you are generating revenues that equal half the cost of a new employee (and remember, that cost should include additional benefits and package costs), you can go ahead and hire. Typically that new hire should generate a return for you -- both in actual ROI and in terms of relieving you of certain tasks and duties.

In terms of your tax exposure, you would need to consult with your tax preparer or advisor. A lot of factors can enter into the final tax obligation, depending on your particular circumstances.

Again, remember to include all costs, as that $40,000 per year employee will really cost you more like $50,000 to $60,000 depending on where you are and what kinds of benefits you are offering (or willing to offer).

That said, the idea of saving a wage over time can end up costing you a fortune in terms of leveraging your own time and effort in your own company.

More from Entrepreneur

Amina AlTai teaches entrepreneurs and intrapreneurs how to balance a thriving career, body and mind.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur