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Solutions: Cost Comparison
 Average annual cost of regulation, paperwork, and tax compliance for firms with fewer than 500 employees is about $5,000 per employee, compared with $3,400 per employee for firms with more than 500 employees - U.S. Small Business Administration, 1995
The average small business owner spends between 7% and 25% of his or her time handling employee-related paperwork. - U.S. Small Business Administration
What Do Your Employees Really Cost You?
Annual Labor Cost
This diagram represents a typical company, 10-25 employees and what annual
labor cost average might be as a percentage of gross payroll.
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ESG Service Fees
This is your labor cost using ESG
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The ESG
Business Advantage
All employment costs included in the ESG Service fee |
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Current Labor Cost Average
23.00% |
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ESG Service Rate Average
21.00% |
Your labor cost may differ. Please request a cost comparison using the ESG cost comparison generator and get a clear picture of what your employees are really costing you.
Many of the items that make up the Administrative Burden:
- Figure taxes and payroll deductions
- Balance and total all deductions from pay
- Post payroll onto individual files
- Complete pension form (5500) and Mail same
- Reconcile paychecks on bank statement
- Complete and mail state unemployment forms (2699) with check
- Accumulate data for W-2, W-4, 1096 and 1099 forms
- Cost of files, file folders, binders, desks, desktop equipment, etc.
- Handling work's compensation claims
- Time corresponding with IRS/State Government
- Set-up cost for pension plan
- Cost of outside pension management
- Time spent investing funds (profit sharing plans)
- Researching new benefits
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- Figure hospitalization insurance premiums
- Write and sign paychecks
- Make up FICA deposit slip, write check and deposit it in bank on time
- Complete IRS-941 return and mail same with check
- Complete and mail federal unemployment forms (940) with check
- Cost of computer and time machine
- Cost of checks and payroll forms
- Payroll clerk(s) time
- Time spent training/retraining employees
- Time handling state unemployment hearings
- Time spent at unemployment hearings
- Handling hospitalization insurance claims (includes making decisions and servicing problems)
- Cost of pension amendments and audits
- Cost of containment of benefits
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