What is the average cost of benefits for an employer

Private Sector There is more data for the private sector, and the data is broken out for all the available industries and categories. State and Local Government Workers Not surprisingly, state and local governments spend a bit more than the public and private sectors.

Employer Health Insurance Premium Coverage Applicants and potential employees view medical benefits as one of the most important factors in any employee benefit package.

Related posts. About The Author. Subscribe for New Blog Post Notifications. Subscribe to RSS feeds. Most Read. Christine Maxwell 8 Joe Genova 1. It was last updated on September 24, Are employers required to provide healthcare? Disclaimer: The information provided on this website is general in nature and does not apply to any specific U. Health insurance regulations differ in each state. See a licensed agent for detailed information on your state.

PeopleKeep, Inc. LOG IN. Select your product. Subscribe to our blog. What percent of health insurance is paid by employers? In an earlier column we discussed the economic alternatives for head hunting. Anything less will be a drag on your business.

Basic Salary. Basic salaries vary all over the place depending on the industry and a variety of other factors. There are data that can help you calibrate an appropriate base salary. For example, the Massachusetts Software Council puts out an annual Compensation Survey and there are similar publications in other industries.

Be sure to establish rational salary ranges given your growth plans. This means that in most cases there should not be great salary differentials between early hires and later employees- any "risk component" of being an early hire should be made up in the equity compensation component. Employment Taxes. Basic salary and employment taxes are a minimum- in most cases you will need to provide some benefits. These involve actual payment of benefits by the employer.

There are also "self funded" plans where the employer contribution is the administrative costs- e. Vacation is another cost but is subsumed in the basic salary. The costs to this point basic salary, employment taxes and benefits are typically in the 1.