Another 0.9% ($939 max) for CA SDI, $250 workers comp, and the employer probably has some sort of life & disability of their own as well, call it another $500. Payroll & benefits admin for $500. $12k health insurance contribution seems low, but I suppose population skews to 20s and single.
I do think 70% is about the best you can really do ($142k), but I agree 50% would be lavish. Throw in a regular dinner program, or some regular offsite meals & entertainment doesn't hurt. Since 274(e) expenses are fully deductible, IRS is basically paying for 35-40% of that annual picnic, holiday dinner, Caribbean retreat, etc. so it's smart for companies to shell out some real money for these outings.
Thanks! I think there's also about $500/pp of various fees in CA; stuff charged on the first $7k of income.
tangent: security via obesity is a cool idea.
You also have to consider employees who make money vs. employees who cost money. Administrative overhead, management, etc. aren't often major contributors to revenue, but their cost metrics are the same. So the burden on money making employees can be considered to be even higher.
You can get some economies of scale with more revenue generating employees vs. cost center employees, but no matter what, as companies grow they need cost center employees to make the ship sail.
- 6.2% SS + 1.45% medicare fica taxes
- health insurance, of which the employer's share can easily run $1k/mo for a couple in their 30s
- 1.5% payroll tax if in sf, or 0.34% payroll tax for mta in nyc;
so if someone makes $100k in sf, the employer pays
totaling (1.0765 + 0.015) * 1e5 + 12*(1e3 + 1.2e3 + 100) + 500 = $137k. That doesn't include any activities, hardware, or meals. If you buy lunch, a former employer budgeted $14 per person day, so assuming 250 work days = $3500/year