- Interior Department Hides Data, Pushes Back Offshore Drilling Plan
- It May be Sunshine Week, But There Are Dark Clouds over the Slaughter House (CFA Site »)
- Bill McCollum Signs Taxpayer Protection Pledge in Florida Governor's Race
- Sen. Lincoln (D-Ark.) New Ad: I'm not working for the unions
- Making Laws Should Be Transparent
- CFA in Washington Times: Read the Bill! (CFA Site »)
- How the FCC Plans to Tax the Internet (Stop eTaxes Site »)
- Study: Health Care Legislation Will Cost up to 700,000 Jobs by 2019
- Comprehensive List of Tax Hikes in Government Health Bill to be Voted on by House
- Testimony Before U.S. House Appropriations Committee on Labor
Wednesday, March 17, 2010
- The Second Annual Pat Quinn Income Tax Increase Proposal
- How the FCC Plans to Tax the Internet
- Oh, the Irony! It's Sunshine Week, So Let's Push Healthcare Bill Through Without Even Voting On It!? (CFA Site »)
Tuesday, March 16, 2010
- Wisconsin Gubernatorial Candidate Scott Walker Signs Taxpayer Protection Pledge
- Why Do We Get Health Insurance from Our Employers Anyway? (ASA Site »)
- The Enormous Price Tag of Government Run Healthcare (ASA Site »)
- Call for Sunshine Week: "Just Give Us The Earmark Data" (CFA Site »)
- PA-12 Special Election Update: Tim Burns Signs the Taxpayer Protection Pledge
- How Government Accounting Works
- ATRF Analysis: The Importance of International Tax Competition
- How Tax Preparation "Simplification" Will Lead to Tax Hikes
- GAO: Implementation of Coburn-Obama Still Lacking in Some Areas (CFA Site »)
Monday, March 15, 2010
- Latest Developments In The Fight To Stop A Govt Internet Takeover
- China Buys Our Debt, We Give Them Renewable Energy Stimulus Jobs...Seems About Right
- ATR Urges Governor McDonnell to Sign Bill to Abolish State Run Tax Filing
- Saving the Sea Turtles...But at What Cost? (PRA Site »)
- Craig Miller Signs Taxpayer Protection Pledge in FL-24
- The Economics of #StimulusFail
- Missouri Unions and Andy Stern on the Same Page: Raise Taxes (AWF Site »)
- Obamacare, Free Trade, & Our Economic Prosperity
Friday, March 12, 2010
- Rusty Bowers Signs the Taxpayer Protection Pledge for AZ-01 Race
- Ask Your Virginia Legislator to Vote "NO" on Any Budget Containing Higher Taxes
-
ATR Supports H.R. 4781, the
"Keeping American Businesses
Competitive Act of 2010" - Ronald Reagan Legacy Project Urges Naming of California High School After Reagan
- Democrats Attempt to Subvert Congress in Hopes of Carbon Regulation
- Economic Issues Dominate at the Bloggers Briefing
- Pushback Against EPA’s Attempts to Regulate Carbon Emissions Grows
- Minnesota Gubernatorial Candidate Running on a Platform of Tax Hikes
Thursday, March 11, 2010
- Michigan Jobs Ain't What They Used To Be...Unless You Work For The Government
- ATR and CFA Support Earmark Moratorium
- Voter Fraud in the Name of Tax Hikes
- Ballooning Deficits in Greece Foreshadowing Future for the U.S.? (ASA Site »)
- Green Jobs FAIL
- The Evergreen Tax and Fee Spree
- ATR Staffer Testifies Before U.S. House Energy & Commerce Select Committee
Wednesday, March 10, 2010
- The endemic rot in government run health care
- The Debt Panel's 800-lb. Gorilla: Why Andy Stern Stands Out
- The Left Agree: Obamacare Ushers In Their Radical Ideological Agenda
- We Ought Focus On Cutting Taxes & Spending, Not Deficits
- The Debt Panel's 800-lb. Gorilla (AWF Site »)
-
Does the Obamacare Investment Surtax
Apply to Capital Gains? - ATR Urges Opposition to Sen. Isakson Pension Bailout
- Taxpayers to Legislators: Clean Virginia Budget of Taxes
- ATR Supports the Georgia JOBS Act
Tuesday, March 9, 2010
- ATR Urges Utah Governor Herbert to Veto Tax Increase
- More on the VAT
- Public Sector Jobs
- How 550,000 jobs were destroyed by the minimum wage hike
- How Obamacare Will Hurt Poor Women & Children Most
- Federal Workers Make $11,000 More Than Private Sector Workers, and There’s More of Them (AWF Site »)
Monday, March 8, 2010
- Legislation Introduced to Put Ronald Reagan on the $50 Bill
- Pledge Signer Wins Illinois Republican Gubernatorial Primary
- "Net Neutrality" To Kill Jobs
- NY Supreme Court Votes to Evict Residents and Close Businesses (PRA Site »)
- California US Senate Candidates Square Off in First Debate
Friday, March 5, 2010
- ATR and CFA Support the Spending Limit Amendment
- Utah Representative Breaks Tax Pledge
- AWF Will Rate Vote on House Jobs Bill (AWF Site »)
- Energy Tax Hike Series: Use it or Lose it Tax
Thursday, March 4, 2010
- The reliability of spending "estimates"
Wednesday, March 3, 2010
Updated: How Much Does It Cost To Hire a New Federal Employee?
From Ryan Ellis on Wednesday, January 27, 2010 3:48 PM
When politicians claim that they will save money by “in-sourcing” federal functions from contractors, or will respond to some new need by expanding the federal workforce, that has a cost to taxpayers. How much is that cost?
In order to determine the cost of hiring a new federal bureaucrat, ATR has calculated the “all-in” cost of hiring a new employee. We include salary as well as benefits, pension contributions, and payroll taxes. We assume a 40-year federal career. The numbers presented are both nominal and inflation-adjusted. A COLA is assumed which is equal to the average level in the Washington, DC area for the past five years.
Here are the results for a low-cost, medium-cost, and high-cost employee:
| Low Cost (GS-7) | Intermediate Cost (GS-11) | High Cost (GS-15) | |
| Nominal | $4.73 million | $7 million | $13.86 million |
|
Inflation-Adjusted |
$2.73 million | $4.04 million | $8 million |
- The federal general pay schedule for the Washington, DC area is used
- There are separate estimates for low-cost (GS-7), intermediate-cost (GS-11) and high-cost (GS-15) employees. This was recommended as appropriate levels by former administration officials to give a sense of scope
- The employee is assigned a “Step 5” in the GS table for a 40-year career. As employees move up the GS-scale, their steps bounce up and down.
- The five-year moving average for this locality’s COLA is 3.55%, so that is assumed to be the COLA rate going forward
- In order to account for benefits, pension contributions, and payroll taxes, the GS dollar levels are increased by 33 percent, which was standard budgeting practice in the Department of Labor in the Bush Administration
- The dollar value is expressed in nominal terms and after-inflation (2.5%)
Permalink | Email | Print | Tags: TAXES, SPENDING, LABOR, Federal
Related Articles
Obamacare In Venn Diagrams - Wednesday, March 17, 2010 6:23 PM
Interior Department Hides Data, Pushes Back Offshore Drilling Plan - Wednesday, March 17, 2010 5:49 PM
Sen. Lincoln (D-Ark.) New Ad: I'm not working for the unions - Wednesday, March 17, 2010 4:46 PM
Making Laws Should Be Transparent - Wednesday, March 17, 2010 4:30 PM
Study: Health Care Legislation Will Cost up to 700,000 Jobs by 2019 - Wednesday, March 17, 2010 10:21 AM
Comments
This is only half the equation. To come to any kind of meaningful conclusion, you have to also examine what it would cost to outsource to a contractor. In the Washington, DC, area (as used in your example), I think you'll find the costs to use contractor labor for the same functions would be at least 150% that of using federal employees. Bottom line: While less government is certainly preferable, for those inherently governmental tasks that must be accomplished, using federal employees is generally the more economical approach.
>> Bruce L. Sunday, January 31, 2010 3:33 PM