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Cost of employees to employer?


BkyMonster
31st January 2009, 04:22 PM
OH has done his 3 month trial and will soon be negotiating for a non-trial salary.
We were wondering what cost and how much NZ employers may have to pay per employee? Are there taxes or ACC costs or anything like that the employer pays before the employee gets a salary?
We know how much the company makes per customer (X) and how much of that is generally expected to go toward salary(1/Y), so wondering how much of that (1/Y) needs to go to other employee related costs before it can go to a paycheck?

James 1077
1st February 2009, 12:42 PM
OH has done his 3 month trial and will soon be negotiating for a non-trial salary.
We were wondering what cost and how much NZ employers may have to pay per employee? Are there taxes or ACC costs or anything like that the employer pays before the employee gets a salary?
We know how much the company makes per customer (X) and how much of that is generally expected to go toward salary(1/Y), so wondering how much of that (1/Y) needs to go to other employee related costs before it can go to a paycheck?

The only other direct cost (not overheads etc), other than any recruitment agent fees, is ACC.

The cost of this will vary from employer to employer and depend on the type of work. So an office worker working for an employer with a good health and safety record so no claims will cost less than a manual worker in a "she'll be right, mate" business.

So, unfortunately, it isn't possible to work out what the levy is for your OH unless he asks.

BkyMonster
1st February 2009, 04:32 PM
Right then. Sounds good. Varies from state to state in the US but for instance at my old job it cost the employer 2x the employees gross pay in taxes, benefits and other costs.
I figured there was some ACC pre-gross employee pay here but wasn't sure what else.

James 1077
2nd February 2009, 11:59 AM
Right then. Sounds good. Varies from state to state in the US but for instance at my old job it cost the employer 2x the employees gross pay in taxes, benefits and other costs.
I figured there was some ACC pre-gross employee pay here but wasn't sure what else.

Oh, forgot about the other cost - which is Fringe Benefit Tax.

If your OH gets any non-cash benefits then these will be taxed at 64% or 49% of the cash value of them (percentage depends on earnings but if he is higher rate then probably 64%). A car will be taxed at 64% of (I think) 20% of the on-the-road cost of the car but there won't be any additional FBT charge on fuel used in the year.


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