Burdened Labor Cost Calculator
The wage on a paycheck is not the whole cost of a worker. Payroll taxes, insurance and benefits add to it. This adds those costs to the hourly wage, so you can see the burdened rate.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
Add up the percentages for payroll taxes, insurance and benefits, then apply that total to the hourly wage. The result is the wage plus those added costs, per hour.
The percentages are of the wage, not of the price. Use the rates your own payroll records, insurance quotes and benefit plans show, since they vary by employer and by place.
Worked example
A wage of $25.00 with 7.65% payroll taxes, 5% insurance and 10% benefits comes to $30.66 an hour in total cost.
Questions
Is the payroll tax figure the same everywhere?
No. The opening figure is the US employer share for Social Security and Medicare. Other places have different rules, so change the number to match yours.
Does this include paid time off?
Not unless you add it to the benefits percentage. Paid time off is a real cost, so many employers include it there.
Why does the burdened rate matter?
It is the figure to compare against what a job pays. Pricing work below it leaves the cost of the worker uncovered.
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