[noahtallen]

2x TC seems high. For one direct example I know of, benefits package (including all the insurances with all premiums paid by the employer) costs around $25k/yr. I feel like at $150k salary, it’s probably like $200k total cost? Payroll tax employers are responsible for seems around 7-8%. $30k benefits, $12k extra payroll tax leaves $8k for equipment and other expenses. That would be about $1M/yr for 5 employees.

Curious to learn more though.

[vlovich123]

I think the 2x number is a rough ballpark that includes total cost of employment (eg HR salaries / outsourced HR etc). It’s entirely possible that this overhead is smaller for startups and it may have shifted over time (this is a rule of thumb I was told by a few people 10 years ago)