A.C. Bookkeeping

The average full-time office admin

Updated: Mar 9, 2019


staff costs $16.06 an hour, according to www.payscale.com.


Let's break this down in terms of actual payroll cost for your company. If you are thinking

$16.06 x 40 hours = $642.40 a week, you are both correct, and incorrect. Let's take a look at actual payroll cost responsibilities for your company.

“Once I’m officially Regional Manager, my first order of business will be to demote Jim Halpert. So I will need a new number two. My ideal choice? Jack Bauer. But he is unavailable. Fictional. And overqualified.” ~ Dwight Schrute

Actual cost of payroll


Payroll cost to a business is Gross Payroll + Company Payroll Taxes = Actual Company Cost. Let's revisit the above scenario shall we? Gross weekly pay (as calculated above) $642.40 + $56.04 = $698.44


A majority of payroll taxes are taken as deductions from an employees check, which the company is then responsible for paying to the proper agency. (And if you have ever been on the receiving end of a disappointing net check, then you know all too well about payroll tax deductions.) On top of paying these payroll taxes deducted from the emplolyee's paycheck, the employer also pays out additionally more FICA taxes (social security and medicare), federal unemployment, and state unemployment on said employee's gross pay of $642.40. The state unemployment varies, but in the example above, the additional $56.04 every week, is what you can expect as a company, not just the gross payroll.


How can I, as a bookkeeper help?


Not only is your company responsible for paying in these taxes every quarter (some taxes are monthly or even semi-monthly), you have to file payroll tax forms to reconcile these tax dollars every quarter. Just the filing fees alone are daunting for a late form. The penalties on a late federal 941 form for example varies from 5%-25% depending on how many days late. Did I mention there are late fees on the tax payments if they are paid late as well?


Outsourcing payroll isn't a new thing. Payroll is often a separate full -time person or department all together. If you are still trying to do it yourself, or adding it onto your already awesome but over tasked staff, the list of payroll tasks needing even on non-payroll days can be a mile long.


Not sure where to start or what your payroll budget is? Let's connect and let me smooth out the details.