Re:“$20k per month is a paltry amount of revenue” – a guy on...
by hedora on Wednesday November 18, 2020 @11:53PM
(#25146362)
What?
50% implies 120K profit for the owner (pre tax)
That leaves 60k per developer. The standard rule of thumb is that an employee costs their salary in overhead and payroll tax, so, that’s 30K per year per developer, assuming the business has zero operational overhead.
240K for a one person company? Sure.
One with 2 additional employees expecting tech wages? Probably not.
50% implies 120K profit for the owner (pre tax)
That leaves 60k per developer. The standard rule of thumb is that an employee costs their salary in overhead and payroll tax, so, that’s 30K per year per developer, assuming the business has zero operational overhead.
240K for a one person company? Sure.
One with 2 additional employees expecting tech wages? Probably not.