As a general rule the total cost of employing a full-time staff member is around 33% more than their base wage. With this in mind, we thought we would carry out a little ‘thought exercise’ and test this rule.
Standard wage for a bookkeeper
According to Payscale.com the median wage for a bookkeeper in Australia is $26.28 per hour, or approximately $51,941 per year.*
As a comparison seek.com estimates that the average annual salary for a bookkeeper is $57,921 (or $29.31 per hour, based on a 38 hour work week).*
For the purposes of our illustration we will assume an hourly employee wage of $28.09 (which is half way between the two estimates).
* As of 17 July 2015
Additional costs related to employing a bookkeeper may include:
- Leave entitlements (annual, personal, maternity, etc)
- Superannuation (9.5% of salary)
- Performance Bonuses
- Worker’s compensation Insurance
- Training/Professional Development
- HR administration
- Overheads (computers, software, office space, phone, etc.)
- Professional membership/registrations
- Staff amenities (car parking, lunch room, Christmas parties, etc.)
Based on the assumptions that we have made (see below) We calculate an actual hourly cost of $38.17 for this theoretically employed bookkeeper, which is 36.09% higher than the assumed hourly wage of $28.09.
You can download the above spreadsheet here and make your own calculations to see how much your employed bookkeeper is actually costing you.
Non-Financial Advantages and Disadvantages of employing staff
Of course, your decision to employ or contract a bookkeeper comes down to more than the financial cost. We will go through some of the possible the pros and cons of employing versus contracting a bookkeeper in the coming weeks.