Labor burden in construction: How to calculate it - Miter

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Every place a page here uses this source, in the order the words come in it.

1. Unburdened labor costs refer to an employee’s direct, gross pay. If an employee’s hourly rate is $25/hour, their unburdened hourly labor cost is $25/hour. “These are a mix of employer-paid expenses connected to labor, such as taxes, insurance, and benefits.” Exact calculations depend on company policies and state requirements, but common categories include:

   In Outbound headcount budget

2. What is labor burden in construction? “Fully-burdened labor costs are the total of direct costs (like wages) and indirect costs (the labor burden).” Larry isn’t using the right numbers. If he calculated fully-burdened labor costs, he’d see what T-Rex spends on labor beyond base wages and the total costs for each job. With accurate numbers, his bids stop coming in too low, and project margins stop disappearing between the estimate and the closeout.

   In Outbound headcount budget