[rocannon]

According to this site, average health insurance cost for family coverage is almost $20K/y - http://www.ncsl.org/research/health/health-insurance-premium... So it really depends on whether your employees are all single. Also I think you're not counting other things that are normally counted in overheard: cost for space, recruiting, etc: http://web.mit.edu/e-club/hadzima/how-much-does-an-employee-...

[lotsofpulp]

I was assuming that in this scenario, the employer is deciding whether to add an employee versus a contractor, and they already have other employees, then those other overhead costs are there anyway.