Your Maximum Payroll Should Not Exceed This – VIDEO – 2 Minutes

[Tom]

So, just to clarify…

Payroll total percent of sales INCLUDING owner salary should not exceed _____% ?

Payroll total percent of sales WITHOUT owner salary should not exceed _____% ?

Thanks!

[Unknown Member]

Owner salary is relative here. IF the owner works directly in the business, he should pay himself a fair wage for the position he does and count that as labor for the job he does. Anything above that amount should not be considered in payroll but applied toward the net profits of the business.  If the owner does not work as a tech or SA, then his salary would not be counted as part of the equation given.