Labor rate calculator
Start from the wage. Add what the employer pays on top of it and the hours nobody bills. Get the cost of a billable hour and the rate to charge.
Payroll tax rates below are the federal employer rates. Your state unemployment rate and workers' comp rate are on your notices.
Bill this rate
$0.00
Yearly cost of this worker
Each cost for a full year, and what it adds to every paid hour.
| Item | Per year | Per paid hour |
|---|
Terms used here
What each field above means.
| Term | Meaning |
|---|---|
| Labor burden | Everything you pay for an employee beyond the wage: payroll taxes, insurance, benefits. |
| FICA, employer share | Social Security 6.2% plus Medicare 1.45% of wages, 7.65% in total. |
| FUTA | Federal unemployment tax: 0.6% on the first $7,000 of each employee's wages, after the state credit. |
| SUTA | State unemployment tax. The rate and wage base are set by your state, on your yearly rate notice. |
| Workers' comp rate | Dollars per $100 of payroll, set by trade class code, on your policy. |
| Billable share | The part of paid hours you can charge to a client. Travel, shop time, estimates and rain days are paid but not billed. |