CTC of Gross salary

[paulmcphillimy]

Hi,

My company are starting to investigate the possibilities for opening an Australian office and yes we will for sure be getting some professional advice, but I was wondering if someone here can give to me a very approximate on what the true cost to the company of employing some one and for example pay them 4000$ GROSS per month, so to include all social / taxes and other costs to the company.

I am sure there is no quick simple formulae as will depnd on the personal situtaions / maybe on state, but there in most company is a very rough "30%, 50% on top of Gross etc...

Many thanks.

Paul

[Cottoneyes]

Other costs to consider:

Payroll Tax - varies between 4 - 6% average depending on the state employed in (Note most states have no payroll tax until your annual wage bill including super rises above $500,000)
Super - currently 9%, depending on which govt gets in could raise to 15% in the coming years (Some employers pay a total package, so any super rises would not cost the company any more)
Leave provisions - 8% for annual leave, around 1.5% for Long Service Leave, also mandatory 10 days of sick leave per year which is accounted differently from company to company
Workcover - depends on the industry you're in, around 1 - 2% is a good approximation
Assuming the $4000 gross is for a permament employee, if casual, you can remove the leave provisions, but will need to include a casual loading of 25%