The table below is a sample calculation for a 10 person accounting department. We assumed an annual salary including employer contribution to taxes and benefit plans of $48,000 per employee and $85,000 for a manager.
| Cost Item 1 | In House | iCatchIT |
|---|---|---|
| Office Space 1 |
6,600
|
0
|
| Absenteeism 2 |
8,800
|
0
|
| Equipment (Software, PC, Desk, Misc) |
22,000
|
20,000
|
| Administration 3 |
16,159
|
6,000
|
| Parking 4 |
6,600
|
0
|
| Turnover 5 |
225,000
|
0
|
| Staff Salary |
480,000
|
200,000
|
| Management Salary |
85,000
|
19,000
|
| Employer Side of Taxes (SUI, FICA, FUTA, Wcomp - clerical) |
60,000
|
0
|
| Total | 910,850 |
245,000
|
| Savings |
665,850
|
|
| Percent Savings |
78.80%
|
Notes: All figures are in US Dollars. See Footnotes for relevant assumptions.
Outsourcing is a proven management practice that can be made to work favorably for a variety of situations. Outsourcing is not without risks, however careful selection of a outsourcing partner is the first step toward mitigating those risks. In addition, payroll related litigation has made payroll actually quite risky to perform in house.
iCatchIT Accounting Services such as payroll are checked and administered by licensed and insured US Based CPAs. Their expert oversight helps dramatically mitigate the risk for organizations.
