Payroll cost is gross wages plus the employer's own taxes, insurance, benefits and service charges. Work those out first. Then the calculator on this page shows what a loan for a payroll gap would cost each month.
Wages cost calculator, by hand: hours and rates for a Vineland, NJ dry cleaner's counter staff
Wages are hours times the hourly rate, added up for everyone on the payroll. Invented figures, for illustration only: a Vineland, NJ dry cleaner pays three counter and pressing staff every two weeks.
| Role | Hours a week | Hourly rate | Two-week gross |
|---|---|---|---|
| Counter clerk A | 32 | $16.50 | $1,056.00 |
| Counter clerk B | 28 | $17.00 | $952.00 |
| Presser | 20 | $15.75 | $630.00 |
In this invented example, each payroll comes to $2,638.00 in gross wages. If a large customer's account is paid 40 days late, and the paydays fall on days 6, 20 and 34 of that wait, three payrolls come due before the money arrives: $7,914.00 in gross wages alone. Overtime goes in as its own row, at the overtime rate the business pays, and so do tips the business pays out through payroll.
Salary cost calculator: what one salaried manager adds at a Vineland, NJ home health office
A salary costs the employer more than the salary. Invented figures, for illustration only: a Vineland, NJ home health office hires an office manager at $58,000 a year. The office's payroll provider puts its own taxes and insurance on that salary at 11%, or $6,380, and health and other benefits cost $350 a month.
In this invented example, the role costs $68,580 a year, about $5,715.00 a month. The 11% is made up for the example: the real employer-side figures come from the payroll provider or the tax preparer, and they differ from one business to the next. For an hourly role, start from a wage total like the one in the first example and add the employer-side figures the same way; benefits go in only if the business offers them to that role.
Payroll fee calculator: adding a payroll service's charges for a Vineland, NJ sit-down restaurant
Payroll services charge in different ways, and the charges belong in the payroll cost. Invented figures, for illustration only, for a Vineland, NJ sit-down restaurant with 22 employees paid every two weeks:
| Charge | Per payroll | Per year (26 payrolls) |
|---|---|---|
| Base charge | $60 | $1,560 |
| Per-employee charge (22 x $5) | $110 | $2,860 |
| Total | $170 | $4,420 |
In this invented example, the service adds $170 to every payroll. Year-end tax forms, new-hire setup and other extras may carry their own charges; the service's price sheet lists them.
From a payroll gap to a loan amount: using the calculator on this page
Once the gap is known, it becomes the amount to type in. Going back to the invented dry cleaner, $7,914.00 in wages, less $1,914 of cash the business can spare, leaves $6,000 to cover. Spread over six monthly payments at 13.5% a year and worked by hand, each payment is $1,039.74.
Wages are only part of the gap. The employer-side taxes and insurance from the salaried example, and the service charges from the restaurant example, come due with each payroll too, so add the business's own versions of those before settling on an amount.
Typing that amount, rate and term into the calculator on this page brings up the same payment, along with the interest and the sum of every payment. Enter the term in months: typing 1 for one year gives a payment far too high. A gap that keeps coming back may suit a commercial line of credit better than a fixed loan; a one-off gap is what short-term working capital is for.
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