cost of hiring staff

banjobongo

Ive recently set up own own small firm. Currently working from home, my plan is to set up a small office, in a serviced office unit, and hire initally 1 sales support person on a fixed 6 mth contract, at a salary of circa 20K, on a pro rata basis, and see how it goes...
leaving aside the issue of will I be able to hire somebody good at this level of money......
what would the TOTAL COST be to my company be, to PAY an employee 10K for the 6 mths? Just roughly, rule of thumb stuff, in other words for me to pay her taxes etc?

kennyb3

banjobongo wrote: »

Ive recently set up own own small firm. Currently working from home, my plan is to set up a small office, in a serviced office unit, and hire initally 1 sales support person on a fixed 6 mth contract, at a salary of circa 20K, on a pro rata basis, and see how it goes...
leaving aside the issue of will I be able to hire somebody good at this level of money......
what would the TOTAL COST be to my company be, to PAY an employee 10K for the 6 mths? Just roughly, rule of thumb stuff, in other words for me to pay her taxes etc?

Just to be clear is it 10k or 20k you ve mentioned both for 6 months. Is 10k the net pay?

If it is you need to gross it back up which will mean you ll need plenty more detail (credits, cut-off, whether the person has other income etc).

It seems you are talking net when talking about her taxes. As said above this is impossible to state unless you know whether he/she is at 20% or 41% and thats not getting into USC, HC or income levy.

If it's gross, you ll simply pay that plus the employers prsi (8.5% or 10.75% - depending on the answer to my first question)

banjobongo

thanks. Sorry if I was not clear. The salary would be 20K gross, per annum, pro rata, for an initial 6 mths. Based on your feedback the cost would be employers PRSI and thats it?

kennyb3

yep it would be the 20k plus the emplyers prsi of 10.75%.

banjobongo

thansk, thats very helpful. So if my calculation is correct, a gross salary of 20K for 6 mths would cost me 11075, which is 1845 euros per month....
hmmm, food for thought....
thanks!