MECHANICAL ENGINEERING PROFESSIONALS, LLC The Expense of Keeping a Mechanical Engineer on Staff

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Below are some simple calculations on the basic costs and overhead associated with keeping a Mechanical Engineer on staff. We provide this as guidance as man people we talk or work with are not accountants and rarel see the cost of overhead. We also tried to keep our estimates fairl conservative with a fairl standard benefits package. The salaries are based on Southern !alifornia rates as of "all #$$%. &lso note' most tech companies offer a fair amount be ond the basics' usuall with bonuses' stock option plans etc. These are not shown here. We also don(t show a lot of soft costs associated with maintaining an engineer on staff' such as pa roll and accounting' the )* cost of hiring' the cost of managing' travel expenses etc. )owever these are all expenses that are picked up in the overhead rate of a contractor' so these rates are still significantl lower than the real overhead borne b a compan staffing the engineer. The other expense not shown is downtime. The difference between a staff engineer and contract engineer is that ou onl pa a contract engineer for a specific pro+ect or the work the do. "or companies that have intermittent design pro+ects this is often the main benefit. The earl cost of a staff engineer is the earl cost whether or not the engineer is productive.
Mechanical Engineer with 5 years Ex erience Base Salar ,per earEmplo er Social Securit State Taxes )ealth /nsurance Workers !ompensation 1ther /nsurance 3acation4)olida !ompensation Sick Time !omputers and Software 1ffice Space 2$0K Matching

%$$$$ .$$$ #$$$ 0$$$$ 0.$$ #2$$ 5#$$ 6#$$ #7$$ 0#$$ 2$$$ Monthl Expense Weekl Expense )ourl *ate 0$$$%.66 #6$8..# 75.52 88$6.25 ##%7.2# 75.02

Total 0#$0$$ &lternate calculation b subtracting hours for 3acation &nd sick time instead of showing as an expense

Sr! Mechanical Engineer"Pr#$ect Manager"Engineering Manager Base Salar ,per earEmplo er Social Securit State Taxes )ealth /nsurance Workers !ompensation 1ther /nsurance 3acation4)olida !ompensation Sick Time !omputers and Software 1ffice Space 2$0K Matching 067$$$ 0$0#7 6657 0$$$$ #5$$ 2$7$ 0#07$ 72$$ #7$$ 0#$$ .57$ Monthl Expense Weekl Expense )ourl *ate 0.0$2.05 650..67 8#.80 07%.0.%0 6..$.2# 91.51

Total 086#7$ &lternate calculation b subtracting hours for 3acation instead of showing as an expense