What does a new hire actually cost?
When you hire at $25/hr, your bank account doesn't see $25/hr. It sees taxes, insurance premiums, and benefits. Use this tool to find the real number before you post the job.
Employee Burden Calculator
"Ignoring this number is the #1 reason contractors run out of cash despite high revenue."
Worked examples: true hourly cost by role
What four common crew roles actually cost per hour once payroll taxes, insurance, and benefits are added to the wage you quote them.
| Role | Base wage | Taxes + insurance | Benefits / hr | True hourly cost | Burden % |
|---|---|---|---|---|---|
| Apprentice | $22.00 | 24% | $3.00 | $30.28 | 37.6% |
| Journeyman | $35.00 | 27% | $5.00 | $49.45 | 41.3% |
| Lead carpenter | $45.00 | 27% | $6.50 | $63.65 | 41.4% |
| Foreman | $58.00 | 26% | $8.00 | $81.08 | 39.8% |
Tax and insurance percentages are combined into one column here; the calculator above takes them separately. Rates vary by state, trade, and claims history — substitute your own.
Understanding the Hidden Costs of Hiring
In the construction world, the "Burden" is the total cost of an employee above and beyond their base hourly wage or salary.
The Tax Bite
FICA (Social Security & Medicare), FUTA (Federal Unemployment), and SUTA (State Unemployment) typically add 10-12% to the base wage immediately.
The Insurance Load
Workers' Comp varies by trade but often ranges from 8% to 25% for high-risk remodeling work. Generally, the more dangerous the trade, the higher the burden.
Hiring Decision Framework
Before hiring, ask yourself: Can this employee generate at least 3x their burdened rate in revenue?
- Burdened Rate: $45/hr
- Target Revenue: $135/hr
- Margin: This ensures your overhead and profit targets remain healthy.
Stop losing money to uncaught cost overruns.
Track labor burden, collect mobile change order signatures, and see your live profit margin on every job — starting today.
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