Posted: February 2nd, 2016

Ignoring any employment law issues, advise Fred regarding the total costs of employing either one full time employee or two part-time employees.

James has a brother, Fred, who runs his own business. His business is expanding and he plans to take on employee(s) in the tax year 2015-16. He has no other employees.

He will either take on one full time employee in which case the annual salary would be £25,000 (gross) or two part time employees each earning £12,700 (gross).

Required:

Ignoring any employment law issues, advise Fred regarding the total costs of employing either one full time employee or two part-time employees.