How much does an employee cost my company?

How much does an employee cost my company?

A big mistake entrepreneurs make is to evaluate their employee costs based on salaries alone - without considering all the other costs involved in hiring them. Read the whole article and find out how much an employee costs your company.

Even before you hire an employee, you already have to face the expense of recruiting and selecting professionals. Once they have been hired, there are the costs of training and monthly salaries and wages.

It is precisely when we analyze these charges that the costs really come to light. There are many charges involved in paying an employee's salary - as much as 65% per month.

To make you more aware of your company's monthly expenses, in this article we'll look at how much an employee costs your company. Check it out.

[And see also]: What are Simples Nacional's monthly and annual obligations?

How to evaluate the cost of an employee?

In order to assess how much an employee costs, it is necessary to analyze all the expenses that arise when a company decides to hire one. Much more than the salary, there are several costs that are directly or indirectly related.

Even considering the different ways of hiring employees and all the changes brought about by the labor reforms, it is possible to highlight the main expenses that help you understand how much an employee costs your company.

[See also:] Lucro Presumido x Simples Nacional: understand which tax regime is best for you.

Recruitment

The costs start before the employee is even working for your company. From the moment a new vacancy is advertised, the new employee's expenses already begin - which includes the whole process of recruiting and selecting the candidate.

[Learn more:] PIS e COFINS Monofásico Simples Nacional: how to save money?

Capacity building and training

Once an employee has been hired, they need to go through a period of training and qualifications, right? In many companies, these are recurring costs over the years - representing more expenses.

[See also]: How to issue Invoices on Presumed Profit?

Salary

When analyzing how much an employee costs a company, the salary is the main figure considered, isn't it? Even with all the other expenses that are related to the salary paid, this is still the biggest cost of an employee for the organization.

[DOWNLOAD NOW]: Do you want a spreadsheet to perform the Presumed Profit calculation?

Benefits and charges

The key to analyzing how much an employee costs a company lies in the benefits and charges. These expenses include INSS, FGTS, vacations, 13th salary, transportation vouchers, among other benefits and charges.

[READ ALSO:] Income Tax 2023, see what you need to know!

Other costs

There can be many other costs that vary from one company to another. A great example of this is the cost of an employee's uniform, which needs to be renewed on a regular basis.

Invoice, what is it and how does it work? ACCESS THE ARTICLE AND DOWNLOAD THE TEMPLATE.

Analysis of employee costs

Despite all the costs we've just seen, a large part of employee-related expenses are concentrated on wages and salaries. What's more, these are precisely the expenses that are most difficult for entrepreneurs to identify.

To help you calculate exactly how much an employee costs your company, let's understand the costs involved in the different tax regimes.

[Don't miss out]: Companies opting for Real Profit or Presumed Profit

See the main charges levied on the salary of an employee of a company that opts for the Real Profit or Presumed Profit:

• Vacations: 11,11%
• 13th salary: 8.33%
• INSS: 20%
• Occupational accident insurance (SAT): 3%
• Education salary: 2.5%
• Incra / SENAI / SESI / SEBRAE: 3.3%
• FGTS: 8%
• FGTS/termination penalty: 4%
• Social Security on 13th/Holiday/DSR: 7.93%
• Total: 68,18%

This means that an employee with a salary of R$2,000.00 can represent an approximate cost of R$3,360 for the company - in addition to the cost of transport and meal vouchers.

Companies opting for Simples Nacional

Companies opting for the Simples Nacional are exempt from paying certain taxes and charges. For this reason, the costs of keeping an employee are also lower:

• Vacations: 11,11%
• 13th salary: 8.33%
• FGTS: 8%
• FGTS/termination penalty: 4%
• Social Security on 13th/Holiday/DSR: 7.93%
• Total: 39,37%

This means that the same employee with a salary of R$2,000.00 can represent an approximate cost of R$2,788.00 for a Simples Nacional company - in addition to the costs of transportation vouchers and meal vouchers.

Download Free [Spreadsheet] Calculation Simples Nacional 2022

Did you like the tips on how to identify the cost of an employee for your company? Do you have any questions on the subject? Leave a comment!