TenorOpsHR & Team Cost Calculators · Payroll Burden
Free Labor Burden Calculator | True Hourly Employment Cost & Tax Breakdown
Calculate your employee labor burden rate including FICA, FUTA, SUTA, health insurance, retirement, general liability, and workers' compensation.
Taxes, Insurance & Benefits
Labor Burden Inputs
Labor Burden Summary
True Hourly Cost
| Cost Component | Rate | Cost ($/hr) |
|---|
Step-by-step guide
How to Use the Labor Burden Calculator
- 1Enter the employee's base hourly wage
Input the hourly rate paid to the worker.
- 2Verify FICA, FUTA, and SUTA tax rates
Defaults use 7.65% FICA, 0.6% net FUTA, and 3.0% SUTA.
- 3Add monthly health/retirement benefits and insurance
Include general liability ($ per $1,000) and workers' compensation ($ per $100) to see your total hourly labor burden.
Formula & methodology
What Is Included in Labor Burden?
Labor burden measures every statutory and benefit dollar an employer pays on top of base hourly wages:
Hourly Benefit Cost = (Monthly Benefit × 12) ÷ 2,080 Annual Hours Labor Burden ($/hr) = FICA + FUTA + SUTA + Health + Retirement + General Liability + Workers' Comp Labor Burden Rate (%) = (Labor Burden $/hr ÷ Base Hourly Wage) × 100
Common questions
Frequently Asked Questions
What is FICA and why is it 7.65%?
FICA (Federal Insurance Contributions Act) consists of 6.2% Social Security tax and 1.45% Medicare tax paid by the employer, totaling 7.65% of gross wages.
Why is FUTA usually 0.6%?
The statutory FUTA rate is 6.0% on the first $7,000 of wages, but employers who pay state unemployment taxes on time receive a 5.4% credit, reducing net FUTA to 0.6%.
How does Workers' Compensation affect labor burden?
Workers' comp rates are priced per $100 of payroll and vary by risk class—from under $1.00/$100 for clerical staff to $3–$5/$100 for kitchens and $10–$20/$100 for roofing and construction.
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