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CTC - Cost to Company




What would be the cost to company if a person is getting a salary of say 50K and health/critical illness insurance is included in the salary ?

Does this CTC remain in constant proportion for other ranges of salary ..... say 100K?

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Fido

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Post ID: 147337 23-07-09 04:57:54
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pratickm
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Quote:
Originally posted by Fido
What would be the cost to company if a person is getting a salary of say 50K and health/critical illness insurance is included in the salary ?

Group health/critical illness insurance is usually not very expensive.
Most likely less than $100 a month
Quote:
Does this CTC remain in constant proportion for other ranges of salary ..... say 100K?
The insurance premium should be a fixed $ amount, regardless of base salary.
After all, a manager is equally likely to have a health issue/critical illness as a janitor.
But, maybe not ;)

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Post ID: 147374 23-07-09 21:12:35
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Fido
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Thanks Pratickm ,

Any idea about other costs to the employer like EI CPP WSIB .... If an employee is getting say 60K , how much is he costing to the company ~ 70K ??

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Fido.

 
Post ID: 147376 23-07-09 21:17:47
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vikshr
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Quote:
Originally posted by Fido

Thanks Pratickm ,

Any idea about other costs to the employer like EI CPP WSIB .... If an employee is getting say 60K , how much is he costing to the company ~ 70K ??



2009 amounts:-----


CPP:

Employee Premium= (Salary - 3500) x 4.95% ---- Max 2118.60
Employer's cost = Same as above


EI:

Employee Premium= Salary x 1.73% ---- Max 731.79
Employer's cost = Employee's premium x 1.4


WSIB:

Premium rate depends on the type of job and accident history of the workplace.... generally work in factory/warehouse/machine shop attracts higher premium than work in office...

ranges 1% to 2% (of salary) .......... you may use 1.5% for your calc.


Apart from this, Employer also pays EHT (if employer's total payroll exceeds the threshold $400,000) ........

Then Group health/dental/insurance premium ..... depends on what does plan cover.......


Not sure what purpose you want all these numbers for ...... hope this is what you were looking for.....


Cheers !

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Vik

 
Post ID: 147397 24-07-09 08:41:03
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chittesh
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In an organization with better than average benefits with pension (not the worst not the best) benefits constitute 2.5% of salary. I know this because i came across a spreadsheet which has the salary and benenfits cost estimation/calculation.
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Post ID: 147410 24-07-09 11:01:01
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sville
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Quote:
Originally posted by Fido

Thanks Pratickm ,

Any idea about other costs to the employer like EI CPP WSIB .... If an employee is getting say 60K , how much is he costing to the company ~ 70K ??



Besides insurance, there is vacation and any additional company based benefits: bonus, training, educational cost, company equipments provided to employee, any "work-from-home", day-care benefit, etc. Usually bonus has some impact on salary - no bonus might means higher salary. And there is also future value of the employee and the work assigned.
It's tough to put a $ number on overall cost. Same as your guess, I'd guess on 60K it should be around 70-75K. This might change with bonus.

But don't forget the value added by that employee.

Just curious about your curiosity ;) what exactly you are looking for ? and why?


 
Post ID: 147447 24-07-09 19:51:19
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Fido
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Thanks all , Sville , Vikshr , Chittesh .

You have given good responses especially Vikshr who has been kind enough to give accurate figures ...... I d be very honest here ..... just wondering if a permanent employee would ask his employer to convert to contract (in order to save on taxes ) how much would the company be willing to pay w/o feeling the pinch ...

I know contracting is a different ball game altogether and none of the above benefits associated but assuming that longevity can be requested , what would be a comparable rate , the company would perhaps be willing w/o feeling the pinch ....

Would it be foolhardy to say ... ' OK you pay me 60K ..... could you pay me 85K as contract ? '

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Post ID: 147448 24-07-09 20:40:14
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sville
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Quote:
Originally posted by Fido
just wondering if a permanent employee would ask his employer to convert to contract (in order to save on taxes ) how much would the company be willing to pay w/o feeling the pinch ...


Hmm. You could easily add 30-40% more to the fulltime salary. Easily. With contract, the company has good flexibility to control their budget.

But it's not just about $s. A fulltime might gets less in terms of $s but might get work exposure that can't be matched. I've seen multiple cases where contract-offer is killed just because the candidate do not have one particular skill, where as a fulltime offer is made even if the 2/3rd or work environment do not match the candidate. Why so? A fulltime offer, usually, is made with consideration of say 10 years or so. Exception: unless the company is small/startup or the manager is still in his learning phase or lack of available candidates. Think about it as a married couple versus a couple living together for years and years without getting married.

Withdrawal from fulltime could mean a lil bit doubt on commitment. Always take your manager in confidence before making any such request. You don't want that request to backfire (don't make it feel like ... "yeah, i wanna resign, but i don't have any other offer right now";).


 
Post ID: 147496 25-07-09 19:59:08
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sville
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I would prefer contracts with any other company over current fulltime-company.

 
Post ID: 147497 25-07-09 20:00:29
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Fido
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Thanks Sville ,

Yes I agree with what you say with regards to all round development in permanent positions ..... contract work works best in skill specialized area ... the company may be hesitant in offer new sill required work to a contractor ...... and thats the reason why I wish to stress my commitment hence can discount my contract rate .......... I would explain to the Company to treat me as permanent , but pay me as contract ......... its purely for tax reasons ...... I feel both save when it comes to contract .

So let us say if x is getting 70K .... and CTC to company is 85K .... plus another 25%............ 100K /12/(8*160)........ or the company could pay $50/hr .... and still might continue to have for a long time w/o feeling the pinch ...........

In ordinary contract situations (3-6 months ) I would have said the same position of 70K may have got 65-70 / hr ....

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Fido.

 
Post ID: 147500 25-07-09 20:47:03
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Contributors:
chittesh(1)  Fido(4)  pratickm(1)  sville(3)  vikshr(1)  
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