Labor Burden Calculator
Wages
Annual Compensation =
Days/Week = 5
Hours/Week = 40
Paid Days
Vacation = 0
Holiday = 0
Sick = 0
Other = 0
Insurance
FICA = 7.65
Worker's Comp = 2
FUTA/SUTA = 1
Annual Health = 0
Annual Life = 0
Other
Annual Amount = 0
Annual Percentage = 0
Total Burden
Annual =
Daily =
Hourly =
Breakeven
Profit Margin =
Revenue =
ann_amt =
day_amt =
Help
Calculates the total labor burden for an employee and translates the number to average daily cost and average hourly cost. If you know your Gross Profit Margin (GPM), you will see the breakeven point of revenue for this employee.
Rows
Wages
-Annual Amount: Total amount of compensation paid to an employee on an annual basis.
-Days/Week: Number of days the employee works in one week.
-Hours/Week: Number of hours the employee works in one week.
Paid Days
-Vacation: Number of paid vacation days the employee has allotted.
-Holiday: Number of paid holiday days the employee is allotted.
-Sick: Number of paid sick days the employee is allotted.
-Other: Number of other paid days the employee is allotted (floating, bereavement, birthday, etc).
Insurance
-FICA: Annual percent paid by the company on behalf of this employee.
-Worker's Comp: Annual percent paid by the company to cover this employee for worker's compensation insurance.
-FUTA/SUTA: Annual percent paid by the company for unemployment insurance on this employee.
-Annual Health: Annual amount paid by the company to cover the health insurance for this employee.
-Annual Life: Annual amount paid by the company to cover life insurance for this employee.
Other
- Other Amount: Annual total of any other amount(s) paid by the company for this employee. Do not include any amount that has been calculated to this point.
-Other Percentage: Annual percentage of any other amount(s) paid by the company for this employee. Do not include any amount that has been calculated to this point.
Total Burden
-Annual: Annual amount that this employee costs the company.
-Daily: Daily average that this employee costs the company (taking total burden and dividing by the days actually worked).
-Hourly: Hourly average that this employee costs the company (taking total burden and dividing by the hours actually worked).
Breakeven
-Profit Margin: Company's gross profit margin as found on annual P&L.
-Revenue: Amount of revenue the company will need to make in order to breakeven on this employee.
Examples
Calculate the annual labor burden and revenue to be earned for an employee that works 6 hours a day, three days a week. Her annual compensation is $30,000. The benefit package for this employee includes 2 days vacation, 2 days holiday pay, 2 sick days and 2 floating days to take whenever and for any reason. Her health insurance costs the company $300 per month and a life insurance policy is maintained by the company at a cost of $1000 per year. Use 7.65% for FICA, 1% for unemployment insurance and 5% for workers comp insurance. Include an additional $1000 in annual expense to cover misc bonuses and perks. Gross profit margin averages 30%.
-Annual Amount: $30,000
-Days/Week: 3.00
-Hours/Week: 18.00
Paid Days
-Vacation: 2
-Holiday: 2
-Sick: 2
-Other: 2
Insurance
-FICA: 7.65%
-Worker's Comp: 5.00%
-FUTA/SUTA: 1.00%
-Annual Health: $3600.00
-Annual Life: $1000.00
Other
-Other Amount: $1000.00
-Other Percentage: 0.00%
Total Burden
-Annual: $39,695.00
-Daily: $268.21
-Hourly: $44.70
Breakeven
-Profit Margin: 30%
The annual burden is $39,695.00. This employee needs to earn $132,316.67 per year.
Keywords
Annual Compensation
Days/Week
Hours/Week
Vacation
Holiday
Sick
Other
FICA
Worker's Comp
FUTA/SUTA
Annual Health
Annual Life
Annual Amount
Annual Percentage
Annual
Daily
Hourly
Profit Margin
Revenue
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