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Labor Burden Calculator

Enter base wage and employer costs to calculate your true burdened hourly rate and annual cost.

The Labor Burden Calculator computes the true hourly cost of construction labor by adding employer taxes (FICA, FUTA, SUTA), workers compensation, health insurance, and benefits on top of the base wage. Construction labor burden typically adds 30-50% to base wages.

Labor Cost Inputs

Straight-time hourly rate before any burden costs

$

Social Security + Medicare (employer share)

%

Federal unemployment tax (net of credit)

%

State unemployment tax (varies by state and experience rating)

%

As a percentage of wages (varies by trade/class code)

%

Employer-paid health/dental/vision premium allocated per hour worked

$

Retirement contributions, PTO accrual, training, etc.

$

Burden Breakdown (per hour)

FICA (7.65%)$2.30
FUTA (0.60%)$0.18
SUTA (3.00%)$0.90
Workers Comp (8.00%)$2.40
Health Insurance$4.50
Other Benefits$1.00
Total burden per hour$11.28

Labor Cost Summary

Base hourly wage$30.00
Total burden per hour$11.28
Burdened hourly rate$41.28
Burden percentage37.58%
Annual cost per employee (2080 hrs)$85,852.00

Burden percentages are estimates. Workers comp rates vary by classification code and state. SUTA rates vary by employer experience rating. Consult your insurance broker and payroll provider for precise figures.

Example

A concrete subcontractor wants to know the true hourly cost of a journeyman laborer earning $28/hr before building their unit price bid.

Base hourly wage$28.00
FICA (7.65%)$2.14
FUTA (0.6%)$0.17
SUTA (3.0%)$0.84
Workers comp (10.0%)$2.80
Health insurance$4.50
Other benefits$1.00
Total burden$11.45/hr (40.9%)
Burdened hourly rate$39.45/hr

How to Use This Tool

  1. 1Enter the base hourly wage for the worker or crew average.
  2. 2Fill in employer tax rates (FICA, FUTA, SUTA) — defaults are provided for current federal rates.
  3. 3Enter workers compensation rate and any health/benefit costs.
  4. 4Review the burdened rate, burden percentage, and annual cost breakdown.

How to Apply the Results

Use the burdened rate in your bid pricing instead of the base wage. The burden percentage shows how much labor actually costs beyond the paycheck — most contractors underestimate this by 10-15%.

Frequently Asked Questions

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