Labor Burden Calculator

Find the fully burdened labor rate — the true hourly cost of an employee after taxes, benefits, and overhead.

Social Security + Medicare (7.65%)

Federal unemployment (effective 0.6%)

Health, retirement, etc.

$37.34/hr

Fully burdened rate

24.4%

Burden added

$77,657

Annual cost

Burden breakdown

Employer FICA (Social Security + Medicare)7.7% · $2.30/hr
Federal Unemployment (FUTA)0.6% · $0.18/hr
State Unemployment (SUI)2.7% · $0.81/hr
Workers' Compensation1.5% · $0.45/hr
Benefits (health, retirement)8.0% · $2.40/hr
Overhead (PTO, equipment, admin)4.0% · $1.20/hr
Total burden24.4% · $7.34/hr

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Estimates only, using editable 2025 US defaults. Tax and insurance rates vary by employer, classification, and locality — verify with a licensed accountant before relying on these figures.

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The wage you pay is never the real cost of an employee. On top of base pay you carry employer FICA, federal and state unemployment, workers compensation, benefits, paid time off, and overhead — collectively the labor burden. This labor burden calculator adds every component and returns the fully burdened labor rate per hour and per year.

Knowing your fully burdened rate is essential for setting bill rates, quoting projects, and comparing W2 employees against 1099 contractors. Start with the editable 2025 defaults, adjust to your business, and watch the burden breakdown update instantly.

Labor Burden by State

State unemployment and workers comp change the burden. Open a state-specific calculator with local defaults:

AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaii

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Frequently Asked Questions

What is labor burden?
Labor burden is the total cost of an employee beyond their base wage — employer payroll taxes (FICA, FUTA, SUI), workers compensation, benefits, paid time off, and overhead. The fully burdened rate is the base pay plus all of that burden.
How do you calculate the fully burdened labor rate?
Add every employer cost as a percentage of the base wage, sum them into a total burden rate, then multiply the pay rate by (1 + burden). For example, $30/hr with a 25% burden is a $37.50/hr fully burdened rate.
What is a typical labor burden rate?
For most US employers the burden lands between roughly 15% and 30% of base wages, depending on benefits, workers comp class, and state unemployment rates. Heavily benefited or high-risk roles can exceed 40%.
Does labor burden vary by state?
Yes. State unemployment (SUI) wage bases and rates differ significantly, and workers comp varies by state and job classification. Use the state-specific calculators below to start with local defaults.
Are these figures tax advice?
No. They are editable planning estimates using 2025 US defaults. Confirm payroll tax, SUI, and workers comp rates with a licensed accountant.