Administrative Cost Calculator

Administrative Cost Calculator

A survey performed by the Society of Human Resource Managers (SHRM) and the Bureau of National Affairs (BNA)* concluded that businesses with less then 250 employees will spend on an average of $1,602 per employee/per year in time, wages or fees on 55 key HR activities. The survey also suggested that the smaller the company, the higher the cost of HR administration.

The tool below helps you estimate your administrative service costs based on payroll size and estimates of time/expenses in key areas.

Calculate Your Weekly HR Admin Costs

1) Enter Weekly Gross Payroll
2) Number of Employees
3) Payroll Preparation Time
* Select a Percentage 1%  2%  3%  4% 

This includes tasks such as:

  • Cost of time spent to write, sign & posting checks
  • Cost of paychecks
  • Time spent maintaining vacation & sick time
  • Time spent answering payroll related employee
  • Cost to prepare tax deposits, 941’s, 940’s, W-2’
  • Payroll banking costs and/or payroll services
4) Administration Expenses
* Select a Percentage 2%  3%  4%  5%  6%

This includes tasks such as:

  • Deposits for Workers’ Compensation Policy
  • Workers’ Compensation Claims Handling
  • Time and money spent on employee handbooks
  • Time and money spent on safety manual
  • Employee file maintenance
  • Healthcare enrollments
  • Insurance Renewals
  • Plan maintenance
  • COBRA Administration
  • Group health claim forms & questions
  • Unemployment compensation disputes
5) Executive Expenses
* Select a Percentage 3%  4%  5%  6%  7%

This includes tasks such as:

  • Cost of time to negotiate W.C. program
  • Cost of time to shop your group health program
  • Employee personnel management
  • W.C. injury history reports
  • Americans with Disabilities Act Compliance
  • Sexual Harassment Policy
  • OSHA Reports and Compliance
  • IRS Compliance and Documentation
  • Wage & Hour Compliance/Documentation
6) Retirement/Pension/401k
* Select a Percentage 2%  3%  4% 

This includes tasks such as:

  • Cost of plan documentation/annual qualification
  • Cost of administration/governmental regulations
Your Estimated Admin. Costs:
Admin Cost Per/Employee:

NOTE:  Not a single item listed above represents a contribution to your bottom line. You could be spending your time more efficiently on things that will grow your business and make a profit.