Burden Rate Equation:
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The Hourly Burden Rate for insurance represents the cost of insurance per hour of work. It's a key metric for businesses to understand the insurance costs associated with their labor hours.
The calculator uses the Burden Rate equation:
Where:
Explanation: The equation calculates how much insurance costs are incurred for each hour of work.
Details: Calculating the hourly burden rate helps businesses accurately allocate insurance costs, price their services appropriately, and understand their true labor costs.
Tips: Enter total insurance costs in dollars and total hours worked. Both values must be positive numbers.
Q1: What should be included in insurance costs?
A: Include all insurance premiums, workers' compensation costs, and other insurance-related expenses for the period.
Q2: How should hours be calculated?
A: Use total billable hours or total hours worked during the same period as the insurance costs.
Q3: What is a typical burden rate?
A: Burden rates vary widely by industry, location, and type of work. Compare with industry benchmarks for context.
Q4: How often should this be calculated?
A: Typically calculated monthly or quarterly to track changes in insurance costs and productivity.
Q5: Can this be used for individual employees?
A: Yes, you can calculate individual burden rates by using employee-specific insurance costs and hours.