Finance
True Cost of an Employee
An employee's salary is just the start. The total burden — taxes, benefits, insurance, overhead — is typically 25-40% more on top.
FAQ
Why does the 'real' cost matter? +
Quote a contracted hour at $50/hr to win business. Then learn your fully-burdened cost is $58/hr. You lost money on every job.
Typical burden multiplier? +
1.25-1.35× salary is common for office workers. 1.4-1.7× for trades workers (higher workers comp, more equipment). Government/union: 1.5-2.0×.