Reading Time: 2 minutes
The national average paid out by employers for employee benefits is 39 percent of total payroll costs.
This figure comes from the U.S. Chamber of Commerce, based on a survey of nearly 400 U.S. companies of various sizes, industries and geographic locations.
Here are some of the specific figures from the survey:
The average payroll dollar is broken down like this: 61-cents in wages, 11-cents in medical benefits, 10.9-cents for holidays and vacation, 8.2-cents for legally required payments such as payroll taxes and Workers’ Comp, 8-cents in retirement and savings contributions, and 1-cent for other costs.
Here’s what the benefit dollars go for:
However, “average” percentages can be misleading. Comparing your own company’s benefits costs to a national average is not very helpful.
Smart strategy: Do a breakdown of your payroll costs. Calculate how much each item in the employee’s payroll costs. Then share this information with your employees once a year in a report. The more employees know exactly what they receive — and what it costs — the more likely they’ll appreciate the full value of their job.
© Copyright 2014. All rights reserved.