Field Service Labor Burden Calculator

The truck, the fuel, and the drive time are labor burden too. Field service burden starts near 39% before the first invoice.

Pre-filled with field service estimates: workers comp 4.0%, benefits 9.0%, 12 PTO days, overhead 10.0%. Edit any field below.

Social Security + Medicare (7.65%)

Federal unemployment (effective 0.6%)

Health, retirement, etc.

$41.57/hr

Fully burdened rate

38.5%

Burden added

$86,455

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' Compensation4.0% · $1.20/hr
Benefits (health, retirement)9.0% · $2.70/hr
Overhead (PTO, equipment, admin)14.6% · $4.38/hr
Total burden38.5% · $11.57/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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An HVAC technician paid $30 an hour costs the company about $41 an hour, and that is before counting the hours the technician spends driving instead of billing. Field service is the industry where the vehicle is part of the labor cost and where a third of paid time is never invoiced. This field service labor burden calculator pre-fills trade defaults so the hourly rate on the invoice covers what the technician costs.

Why labor burden is different in field service

Field service burden is different because the biggest cost is not a tax. A service van, its fuel, insurance, maintenance, tools, and the tablet running the dispatch software are consumed hour by hour, and none of them shows up in payroll. Companies that price them as general overhead undercharge on labor-heavy jobs. The 10% overhead default is a starting estimate; a company that divides its true fleet cost by technician hours often finds a higher number.

Workers comp for HVAC, plumbing, and electrical service classes sits well above office rates because the work involves ladders, confined spaces, refrigerants, and live circuits. NCCI classifies most residential and commercial service work in the low to mid single digits as a percentage of payroll, and rates vary by state. The 4% default is a midpoint estimate for a mixed service crew.

Then comes utilization. A technician paid for eight hours typically bills five or six after drive time, parts runs, callbacks, and paperwork. The burden percentage in this calculator applies to every paid hour, but revenue only comes from billed hours. Divide the fully burdened hourly cost by your utilization rate to get the cost per billable hour, which is the number the labor rate on your price book has to beat.

Worked example with field service defaults

Take a hvac technician at $30.00 an hour. Add employer FICA at 7.65%, FUTA at 0.6%, state unemployment at the 2.7% US default, workers comp at 4.0%, benefits at 9.0%, and 14.6% for overhead plus 12 PTO days. Total burden is 38.5%, so the fully burdened rate is $41.57 an hour, or $86,455 a year on 2,080 hours against $62,400 of base wages.

Role (pay estimate)Pay rateBurdenFully burdenedAnnual cost
HVAC technician$30.00/hr38.5%$41.57/hr$86,455
Plumber$32.00/hr38.5%$44.34/hr$92,219
Field service technician$27.00/hr38.5%$37.41/hr$77,810

Pay rates are rounded estimates near national medians, and the SUI line uses the US default. Open a state page from the labor burden by state list to swap in a local SUI estimate, then enter your own class rate for workers comp.

What drives the range

Vehicle and fuel cost

Total the annual cost of the van, fuel, insurance, maintenance, and telematics, then divide by paid technician hours. Enter that as a percentage of the pay rate in the overhead field, replacing the 10% estimate with your own number.

Utilization rate

Track billed hours against paid hours. At 65% utilization, a $41 fully burdened cost becomes $63 per billable hour. Pricing below that on a time-and-materials job loses money on every call.

Trade class code

Plumbing, HVAC, electrical, and appliance repair carry different workers comp classes, and residential often differs from commercial. Enter the rate for your dominant trade, or split the crew by class.

On-call and overtime

Emergency service means overtime and on-call pay that raise the average hourly rate the burden is applied to. Use a blended rate that includes the overtime premium a typical technician earns.

Field Service burden defaults

InputDefaultTypical spread (estimate)
Workers comp (% of payroll)4.0%2.0% to 8.0% by class code
Benefits (% of wages)9.0%Health and retirement only
Paid time off12 days4.6% of a 2,080-hour year
Overhead (% of wages)10.0%Entered as 14.6% with PTO
Typical total burden38.5%30% to 45%

Sources: benefits share from the BLS Employer Costs for Employee Compensation release; workers comp variation from NCCI class codes and state rating bureaus; pay estimates near BLS OEWS medians. PTO, overhead, and the burden range are estimates, not published figures.

More labor burden calculators

Labor burden calculator with the generic US defaults, and labor burden by state for local SUI estimates in all 50 states and DC.

Other industries: Construction, Staffing Agency, Healthcare, Manufacturing, Hospitality.

Field Service Labor Burden FAQ

What is a typical labor burden rate for field service companies?
Estimates commonly fall between 30% and 45% of wages when vehicle and tool costs are counted as burden rather than general overhead. Companies that provide take-home vans and pay full benefits sit at the top of that range. These are ranges, not audited averages; enter your own fleet and benefits numbers.
Should the truck be counted as labor burden?
If the truck is assigned to a technician and consumed by billable work, yes. Pricing it in labor burden ensures the labor rate on the invoice recovers it. Pricing it in general overhead spreads it across parts and equipment sales too, which understates the labor rate.
How do I get from burdened cost to a billable labor rate?
Divide the fully burdened hourly cost by the utilization rate to get the cost per billable hour, then apply the gross margin you need. At $41 burdened, 65% utilization, and a 50% target gross margin, the billable labor rate is about $126 an hour.
Does field service burden change by state?
Yes. Workers comp rates for the same service class differ by state, and state unemployment wage bases range widely. Pick your state from the list linked below to pre-fill SUI, then set workers comp from your policy declaration page.