UPDATED SPREADSHEET. Reformated and improved. Now allows for the different tax brackets. Both state, federal and FiCA/Self-Employed Tax. THESE ARE SAN DIEGO’S NUMBERS!!! Put in your numbers and see how much or how little you have made. Make changes to your inputs (what you charge and what you pay, vehicle daily average, Direct cost/overhead, Hours worked) to see what changes need to be made to reach your goals. The Variables you can change are in light grey. I made changes and included what each model, using the same inputs, qualifies for. When talking to property managers, they mentioned what I needed to make to qualify for renting one of their units. Check out the numbers next to the comparison. The focus of this comparison is for the employee/independent contractor to see what they are getting into. Who REALLY makes more. It also gives the employer a birds eye view of what he needs to charge to make a profit and can bid accordingly. I will be adding to this as time goes by.
Need a Spreadsheet Customized for your Company? Need to do an analysis of your set up/ situation using Excel? Reach out to me and I can make something similar for your company. Employee_Contractor comparison.xlsx (24.7 KB)
with employees:
30% for field wages
20% for remainder of operations: supplies, equip, vehicles and payroll burden including vehicles and liability insurance (cost of providing actual service)
40% for business taxes, admin/finance (office person or reimburse owner), marketing (sales person or reimburse owner), owner pay as mgmt
10% profit
owner personal taxes paid out of total reimbursements: field, admin, marketing, mgmt (which can also be a field regular w-2 paycheck plus distributions or really drilled down and categorized for each dept % of work done)
without employees:
25-35% for business expenses (truck payment or not being the biggest swing from low to high)
65-75% for owner pay and personal taxes
personal taxes will feel doubled if filing as a sole proprietor esp if $1 over the next higher tax tier (incorporate for many tax advantages and meet with your tax guy in fall to avoid any surprises in new year)
use car repair hourly rates as a benchmark or aspirational target (BMW is at $209/hr in so cal)
In an OSHA 8 hour day, unless on multiday jobs, typically 6 hours on the glass (billable hours) a day is an annual average
it will help you get a more realistic view after holidays, sick, personal, vacation, bad weather of what an employee or you are more likely to accomplish. I think employees came in more like 80% lol
