For Subscribers

What Portion of Revenue Should Go to Payroll?

If you're wondering about how much money to put aside for payroll, read this.

By Joe Worth •

Opinions expressed by Entrepreneur contributors are their own.

Q: Is there an ideal percentage of revenue that should go to payroll?

A: In my opinion, anyone who claims such a thing exists is full of it. Truth is, the figures vary widely among not only entire industries but also among the companies within them.

Continue reading this article — and all of our other premium content with Entrepreneur+

For just $5, you can get unlimited access to all Entrepreneur’s premium content. You’ll find:

  • Digestible insight on how to be a better entrepreneur and leader
  • Lessons for starting and growing a business from our expert network of CEOs and founders
  • Meaningful content to help you make sharper decisions
  • Business and life hacks to help you stay ahead of the curve
Join Now Log In

Related Topics

Money Payroll Finance Ask the Money Guy Advice pay scale

Editor's Pick

This 61-Year-Old Grandma Who Made $35,000 in the Medical Field Now Earns 7 Figures in Retirement
A 'Quiet Promotion' Will Cost You a Lot — Use This Expert's 4-Step Strategy to Avoid It
3 Red Flags on Your LinkedIn Profile That Scare Clients Away
Ben Higgins Talks Overcoming Insecurity, Finding Purpose and Juggling Multiple Business Ventures
'Everyone Is Freaking Out.' What's Going On With Silicon Valley Bank? Federal Government Takes Control.
Know Before You Buy: These Are the Costs Associated With Purchasing and Operating a Franchise

Most Popular

See all
Leadership

How to Detect a Liar in Seconds Using Nonverbal Communication

There are many ways to understand if someone is not honest with you. The following signs do not even require words and are all nonverbal queues.

By Don Weber

Marketing

Why Ecommerce SEO Matters More Than Ever in 2023

SEO is becoming more crucial to success in the digital age. Here's why.

By Alex Quin

Starting a Business

How Startups Can Navigate Uncertainty, AI and Investing in 2023

This article discusses how entrepreneurs can best navigate operations, hiring and fundraising this year.

By Danny Cortenraede

By Jacob Zinkula and Aaron Mok

Business News

Iconic Sneaker Retailer Shuttering 400 Locations As It Looks to Make Shift Toward 'Sneaker Head' Consumers

Foot Locker still operates an estimated 1,300 shopping mall locations across North America.

By Emily Rella

By Gabrielle Bienasz