I am working as a single worker in my small office. For the last year I have had more work than I can manage and I am thinking about employing someone to help me.
Now, is there a way that I can determine if I can really afford a new person? I don't want to hire someone for a few months and then have to let him/her go.
So I am looking for a way to "know" if I can really afford a new person. For example, is there a formula or tip that can tell me something like this: "If the salary is X dollars per month, you should earn N times more dollars monthly" or something like this.
EDIT Here are some additional info.
If you need more info, please let me know.
Speaking from a bookkeeping standpoint there is a "formula" to go by:
if (the gross amount of the annual paycheck) << (the total gross amount of money earned over the total year - your gross annual salary)
(gross employee annual salary + your gross annual salary + taxes + other expenses) < (gross amount earned)
If you're looking for a short term employee than you should have 3 - 5x his gross monthly salary in "reserve" to justify employing him.
Things to consider:
Keep in mind that you should do these estimates conservatively and do estimates for the worst-case scenario.
My best advice to you would be to consult with an accountant, manager or at least with a good bookkeeper on how feasible employing someone would be.