Join our business community

Help with on costs.

Discussion in 'Business Accounting & Tax' started by CO2, 9th Oct, 2016.

  1. CO2

    CO2 Member

    Joined:
    3rd Oct, 2016
    Posts:
    6
    Location:
    Brisbane
    HI There

    Im writing a budget for a catering operation and want to double check my roster cost before the contract kicks in

    There are 2 types of employment.

    We will operate under the General hospitality award 2010

    first is casual rates which calculate from level 2 food and beverage attendant which equate to $23.62
    this includes the casual loading.

    the second is a full time manager ( highest level 5 food and beverage supervisor) on a full time wage of $832 a week $43k a year )

    so what i want to confirm is, what other costs i have to budget for.

    what I (think) I know is:

    1, super is 8% and paid qtrly? casual and and full time
    2, I don't qualify for payroll tax as company still small.
    3, Annual leave in incorporated into full time salary (employee takes time off during down time no trade)
    4, public holidays incorporated into annual salary.
    5, workers comp is $2500 a year roughly
    6, cover for sick pay

    TIA
     
  2. pinkboy

    pinkboy Member

    Joined:
    29th Aug, 2016
    Posts:
    10
    Location:
    Mackay
    1. Superannuation is 9.5%. You should also research your further obligations as it increases to 12% in 2025. Paid quarterly as a minimum (can pay monthly).

    5. Workers compensation will require you to estimate wages and superannuation for fiscal year, then the following year they will ask you to estimate again, while adjusting your previous vs actual for the past year.

    You will also need to account for public liability insurance, professional indemnity insurance, licensing fees for a start. Then there is BAS, IAS, PAYG taxes, then materials/supplies and running costs.

    You will have to really think your prices carefully to cover costs and make profit.

    pinkboy
     
    CO2 likes this.
  3. CO2

    CO2 Member

    Joined:
    3rd Oct, 2016
    Posts:
    6
    Location:
    Brisbane
    thanks. I have budgeted for most of that, but was still not sure about wages.

    A few people have said that you ad 25% on top of gross wage to cover everything but i thought this was a bit steep, so just asked again
     
  4. pinkboy

    pinkboy Member

    Joined:
    29th Aug, 2016
    Posts:
    10
    Location:
    Mackay
    If you give me your email address, I can email you a spreadsheet that calculates charge out rates using hourly rates as the base. You will be very surprised to see that the 25% on top mentioned may not actually cover employee expenses.

    @Propagate can vouch for its usefulness.

    pinkboy
     
    Propagate likes this.
  5. Moyjos

    Moyjos Member

    Joined:
    25th Sep, 2016
    Posts:
    24
    Location:
    Caloundra, Qld
    @pinkboy I would be interested to see that spread sheet . hAve pm'ed you my email)

    Our workplace solutions company charges us 25% on top of the award wage and that covers all super/ workcover and their cut.

    I guess they make their money via volume of scale(they employ 1000's of staff) 125% of admin staff is probably way too much where 125% of factory manufacturer staff is probably close to right.
     
  6. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    24th Aug, 2016
    Posts:
    158
    Location:
    Sydney
    Should I set up a resources section where people can upload spreadsheets and such?

    Has the advantage that it's a separate part of the site and so resources don't get lost amongst the discussion threads, and they can also be updated.
     
    hobo likes this.
  7. Paul@PFI

    Paul@PFI Member

    Joined:
    20th May, 2017
    Posts:
    23
    Location:
    Sydney
    I wouldnt. Some contain serious issues and you may be sued. I have seen some bloody aweful "good client records". I would consider how the good the bad and the ugly can be defined.