Employment Practice Cost
Conservative Estimate Per Employee Per YEAR

Payroll Processing Costs

+ Time Collection $24 - $48/ee per yr (Kronos) $
+ Cost of Payroll clerk's time per ee $
+ Cost of Outside Payroll Service $51.76/ee (ADP) $
+ Tax Filing Cost 940,941,W2,W3,1099 etc. $10/ee (ADP) $
+ Misc. Bank, Check Envelopes, Delivery $7.50/ee (ADP) $

Employment Related Legal Costs

+ Employee Handbook or Policy  $
+ Routine Employee Legal Issues .25 hrs/ee  $
+ Record Keeping Cost 2 hrs/ee yr  $

HR & Benefit Administration Costs

+ HR Compliance 2 hrs/ee yr (Dept. Of Labor) $
+ Employee Relations & Services 17 hrs/ee yr (SHRM) $
+ Safety and Other HR Training 4 hrs/ee yr (SHRM) $
+ Human Resource Systems and Filing  $
+ Core Benefits Administration 1 hr/ee yr (BLS) $
+ Benefit Billing & Eligibility 1 hr/ee yr (BLS) $
+ Retirement Plan Set-Up & Administration $50/ee yr $
+ Cafeteria Plan Administration 1 hr/ee yr  $

Risk & Miscellaneous Costs

+ Federal & State OSHA Compliance 10 hrs/ee yr  $
+ ADA, ERISA, EEO, ADEA, PDL, etc. 2 hrs/ee yr (EEOC) $
+ Employee Turnover Cost 6 hrs/ee yr $

Potential Legal Costs

+ Discrimination, Sexual Harassment, Wage and Hour, etc. (CA. Bar Assn.) Average $90,000 each case $

TOTAL PROCESSING COSTS Per Employee Per Year (How many employees do you have on the average) x this number, for cost results $

Contact us for further explanation of this calculation.