What labor burden means
Labor burden is the cost of an employee beyond the hourly wage: payroll taxes, workers comp, benefits and paid time off.
Also called burdened labor rate.
Where it shows up in your business
Pricing labor at the bare wage loses money on every hour. Add the burden to get the real cost of an hour, then add overhead and profit to get the billing rate.
Work it out
- Free calculator: Labor rate calculator
- Money guide: 1099 vs W-2 for your first helper
- Money: Money guides for contractors