The cost of an employee is more than their salary. Hiring an employee often involves paying a portion of their social security, medicare and unemployment taxes. Many companies offer benefits regarding various insurance programs, where the company may pay a portion of the cost, contributions to retirement plans or pensions and other fringe benefits that add to the hiring cost. When looking employee compensation, it is important to consider all of these expenses rather than just the direct salary.
Total Employee Compensation Package
Wages |
Government Benefits |
Insurance Benefits |
Retirement Benefits |
Fringe Benefits |
Total Compensation |
|---|---|---|---|---|---|
| $ 75,000 | $ 6,171 | $ 11,385 | $ 5,725 | $ 695 | $ 98,976 |
| Compensation Category | Amount | Percent |
|---|---|---|
| Wages | $ 75,000 | 75.7 % |
| Government Benefits | $ 6,171 | 6.2 % |
| Insurance Benefits | $ 11,385 | 11.5 % |
| Retirement Benefits | $ 5,725 | 5.7 % |
| Fringe Benefits | $ 695 | 0.7 % |
| Total Compensation | $ 98,976 | 100.0 % |