Where does this making $45 for the company if the employee is getting $20 come from?
$20 Then add employee direct cost for tax and benies. now you have $38 your actual cost for the employee each hour, now add the overhead of $26 per hr. and that is for bare min operating. , now we have $61 still no profit yet, so if we add $6.00 to it then we can ask $70 per hour with O'Boy $6.00 profit per hour, Wow let me plan my vacation for a round the world trip.
Oh, if for any reason this employee works for less then 5.5 hours that day, then there is no profit and we end up paying for the lost time.
If the employer is making $45 an hour he must be charging at least $110 an hour, which may be the case, we can't get $110 in this area.
[This message has been edited by LK (edited 09-20-2004).]
