Startup Salary Calculator: Discover the Actual Costs of Maintaining Employees in the US
Are you a startup founder or just considering starting a new business venture?
Amazing! At SPDLoad, we love working with startups and helping them create beautiful products that make an impact.
Building your team as a startup and staying within budget might be a hell of a task, especially if you’re based in the US and thinking about hiring your developers onshore. Our Startup Salary Calculator can simplify your life just a little bit.
It’s a valuable tool that will help you determine the true cost of hiring employees in the US.
This startup compensation calculator is built to provide insights into salary components and other relevant factors.
Let’s see how this tool works.
How to Use the Startup Compensation Calculator?
Startup compensation is basically what a startup offers its employees in total. This covers everything from salaries and perks to stock options and future pay raise plans.
The goal is to put together a package that fits the startup's goals and budget while also keeping employees happy and motivated.
When comparing outsourcing to handling everything in-house, it's important to highlight the cost-effectiveness.
Take, for example, paying $35 in both the US and Ukraine. In Ukraine, it's a flat $35, while in the US, there are various additional costs.
Our Savings calculator clearly shows how much you save by outsourcing. But remember, startup compensation isn't just about the immediate savings. It also includes things like stock options and plans for future pay raises.
Without a good plan, it might be hard to attract and keep talented people because your offer can't compete with others.
However, with a smart plan, startups can budget better, especially in the beginning when money is tight. Plus, investors like knowing how their money is being used to pay employees.
Before you actually kick off the hiring process, calculate the approximate compensation you’ll pay to developers based in the US.
Armed with this knowledge, you can decide whether you’ll be able to stay within budget or need to look for other options. For example, you can consider outsourcing.
Scale your team on-demand with dedicated IT specialists.
Hire outsourcing experts from SPDLoad.
Our startup compensation calculator considers not only the hourly rate entered as the final amount that you, as an employer, are willing to pay.
However, there are more costs to consider:
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Holidays and Vacation Days: If you offer paid time off, it adds to the final salary costs because the U.S. doesn't require paid vacation or holidays.
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Taxes: Employers must pay various taxes, totaling around 10.35% of the employee's salary, including Social Security, Medicare, and State Unemployment Tax.
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Office Rental Price: According to Workspace Regulations, the minimum workspace in the office must be at least 40 square feet. However, the average private sector work area is approx 120 square feet per employee. So, the calculator takes 80 square feet per employee as a default.
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Accountant Expenses: Managing taxes takes time, and the calculator includes an average of 175 hours per company and 13 hours a year per employee, based on a PwC report.
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Summary Costs: This column adds up all extra expenses, including taxes, office rent, and accountant fees, on top of the original price.
If the estimates seem off, you can tweak the info to see how it changes the results.
Remember, it's just a tool you can utilize to get an understanding of what the developers’ salaries can look like. You should also consider other factors, such as what competitors are paying and what's fair for the role.
Use the estimates to help you decide on the best salary and equity package for your startup and the people you want to hire.
If you have any questions about our startup salary calculator or want to learn more about development outsourcing with SPDLoad, contact us.
We’ll be happy to meet you and see how our services can benefit your startup.
