1. What is Labor Burden?

Labor burden refers to the additional costs beyond an employee's base wage that employers must pay. These include taxes, insurance, benefits, and other mandatory expenses associated with employing workers in the construction industry.

2. How Does the Calculator Work?

The calculator uses the burden formula:

Where:

• \( Taxes \) — Payroll taxes and other tax-related expenses
• \( Insurance \) — Workers' compensation and other insurance costs
• \( Benefits \) — Health insurance, retirement contributions, etc.
• \( Hours \) — Total hours worked

Explanation: The equation calculates the additional cost per hour that employers must pay above the base wage rate for each worker.

3. Importance of Burden Calculation

Details: Accurate burden calculation is crucial for construction companies to properly estimate project costs, bid competitively, and maintain profitability.

4. Using the Calculator

Tips: Enter all dollar amounts as total costs (not hourly rates) and the total hours worked. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in labor burden?
A: Typical components include payroll taxes, workers' compensation insurance, health insurance, retirement benefits, paid time off, and training costs.

Q2: How does burden affect project bids?
A: Burden costs must be added to base wages to determine true labor costs. Ignoring burden can lead to underestimating project costs.

Q3: What's a typical burden rate in construction?
A: Burden rates vary but typically range from 20% to 50% of base wages, depending on location, trade, and benefits offered.

Q4: Should burden be calculated per employee or company-wide?
A: Both approaches are useful - company-wide for overall costs, per-employee for specific project costing.

Q5: How often should burden rates be updated?
A: At least annually, or whenever there are significant changes in insurance rates, tax laws, or benefits packages.