Bizgrowth Channel — text status

Paying an employee $35 an hour doesn't mean they cost your business $35 an hour. Add payroll taxes, benefits, overtime, and the hours they're paid but can't bill to customers. Suddenly, that $35 employee could cost you over $100 for every hour you actually bill. And that's before making a profit. If you want a 55% gross profit margin, you may need to charge around $250 an hour. Don't set your rates based on what you pay employees. Set them based on what each billable hour actually costs you.