Free Labor Burden Calculator

What Is Labor Burden?

Simply put, your labor burden is the actual cost of having and maintaining your employees. This cost includes not only their salary but hidden costs outside of their regular pay. These include things like:

• Overhead (building costs, utilities, property taxes, office space, equipment rental, etc.)
• Insurance/Benefits
• Payroll taxes
• Temporary job site utilities

Why Does Labor Burden Matter?

For construction and field services, knowing your true labor burden is critical to accurate job costing and estimating. If you don’t know how much your workers cost, you’re much more likely to underbid a job and lose money.

How to Use Clockshark’s Labor Cost Calculator

To determine the true cost of your employee, you’ll need to take into account how many hours they work each week and how many weeks they work each year. Add your annual overhead costs such as property and payroll taxes, insurance, equipment or space rentals, supplies, benefits and any other associated costs and divide by the number of employees you have.

Now you’ll add that amount to the employee’s annual salary to calculate the true labor burden of that employee.

Instructions

1. Enter hourly wage.
2. Enter General Liability Insurance Rate.
3. Enter Workers Compensation Rate.
4. Cost will be automatically displayed for one hour of labor.
5. Clear form and repeat as many times as needed.

Using ClockShark to Calculate Employee Cost

Use ClockShark’s free labor burden calculator to help you accurately calculate what your labor burden is. It is extremely helpful to have an accurate time tracking solution so you can avoid underbidding a project and going over budget.