The real cost of a hire: a worksheet you can copy

Before you hire for the front desk, put every cost on one page. Here's each line, with an example at $18 an hour, full time.

Hourly rate × hours a year. Full time is about 2,080 hours (40 hours × 52 weeks). At $18 an hour, about $37,440.

Employer Social Security (6.2%) and Medicare (1.45%) add up to 7.65% of wages. At $18 an hour, about $2,864.

15.3% is both halves: the employer's share plus the employee's.

Federal unemployment is 6.0% of the first $7,000 you pay each employee. Most employers get a 5.4% credit, so it's usually $42 a year. Employers in a state with a credit reduction pay more.

State unemployment and workers' comp vary by state and job, so ask your provider.

Job posts, interview hours, and the weeks before they're up to speed.

Breaks, sick days, vacations, and the hours you're open but they're off shift.

Paste it into a note or a spreadsheet and fill in your numbers.

REAL COST OF A HIRE (one year)

1. Wages: $____ an hour × ____ hours = $____
   (Full time is about 2,080 hours.)
2. Payroll taxes: wages × 7.65% = $____
3. Federal unemployment: usually $42
   State unemployment: $____ (ask your provider)
   Workers' comp: $____ (ask your provider)
4. Hiring and training: job posts $____ + interview time $____ + training weeks $____ = $____
5. Coverage gaps: hours you're open but they're off: ____ a week

Anything else this role costs: $____

TOTAL: $____ a year

Paste your filled-in worksheet into ChatGPT, Claude or the assistant you use.

Here's my hiring worksheet: [paste it with your numbers]. Add up the yearly total and the cost per hour worked. List every line I left blank, and what I should ask my accountant or insurance provider about it.

Which parts are phone and calendar? Those parts can often be covered without a hire. The rest still needs a person.