The Rule of Thirds indicates an employee's billable rate should be broken down in 3 equal parts (Salary-Overhead-Profit) and is how my employer views things. The US Small Business Administration indicates that an employee's true cost is 1.25 to 1.4 times the salary due to things such as payroll taxes. My question is where do employers typically attribute the payroll taxes, the Salary 1/3 or the Overhead 1/3?
I am about to be in a salary negotiation and would like to know what the standard is. Thanks.