If my business had gross sales of 200,000 what percentage should I set aside for my single employee?

Jay

Employee wages accrue from the date of employment. If I have a business that grosses $200,000 per year, and you are my employee...then we agree on a wage for you. let us say $20.00 per hour...and you agree to work a 40 hour week. I agree to pay you for 2 weeks off every year. So your pay is $41,600.00 per year , but I pay it to you $800.000 every week. So, if you are saying that you are getting money together to start a business, then you can say that $41,600 of that $200,000 needs to be reserved to pay employee wages the first year - IF you have no other income from business that year. I really suggest that you take a trip over to Fiverr and buy a basic business plan for a business similar to yours and read that over and over and over until you understand employee wages ,and business start up expenses

John

You won't be around for long, so it doesn't mean much.

A Hunch

Set aside for what? To pay them? What are they doing?

DEBS

Your question makes no sense. Are you attempting to pay commission on sales? A bonus? Salary?

Anonymous

How on earth would we know? Most employees are not compensated on a percentage of the entire gross of the business. You said nothing about what type of work your employee is performing, what percentage of the gross the employee is generating or how much profit there is.

Casey Y

Gross sales...but what are you selling?? What is the COGS?