How much is your company making off of you? Try the Employee Profit Calculator
You ever wonder how much your employer is making off your work?
Well, I have hired employees and have to figure out how much I will make off of them, so I made a calculator to estimate how much profit I will make, given certain assumptions. I have attached it to this e-mail.
You can use this calculator to get a rough estimate of how much your company is making off of you.
The final "Profit" line is how much the company would make and how much you could potentially earn if you went 1099 in the same role.
Instructions:
- Only fill in the yellow boxes
- Salary - Input your salary
- 401k - Input your employer match %
- Bonus - Input the approximate bonus as a percentage of your salary that you receive
- Health Care - Estimate how much your employer pays for you. ($5,000 - $10,000 for a single person is reasonable, $10,000 - $20,000 for your family is a good range)
- Other - If you get other benefits from your company like gym membership, company happy hours, etc., can input your guess. Or just keep it at $5,000 as a reasonable estimate.
- Billable rate - If you know it, type it in. If not, just divide your salary by 1000. Can tinker around with +/- 20%.
- Total Number Hours - If you are full time billable you can leave it at 1800.
- Profit - This is the estimate of how much your company makes off you.
In my example, if this employee went 1099 and captured the full $150/hour billable rate, he could make an additional $77,576.25 per year!
This assumes his costs as a 1099 are the same or lower. If his health care costs end up being higher, he'd make less. If it's lower, he'd make more.
I'm working on a W2 to 1099 modeling calculator that will be designed for the prospective solo 1099 calculator, but in the meantime I'd love to hear what you think about this calculator.
Employee_Profit_Calculator.xlsx
Want the full playbook? Check out Going 1099.