Guides & Resources
Free, plain-English guides to understanding and pricing the true cost of labor. Every guide includes worked examples and links back to the free calculator.
Whether you're an employer trying to budget a hire, a shop owner pricing a bid, or a freelancer weighing W-2 versus 1099 work, these guides break down exactly what an employee costs and how to turn that into a profitable rate. Start with the true cost of an employee, or jump to any topic below.
Core concepts
The True Cost of an EmployeeEvery cost that goes into a fully-loaded employee, with a full worked example.
How to Calculate Labor BurdenThe formula for your burden rate and true hourly labor cost, step by step.
Labor Burden Rates by IndustryTypical burden multipliers from office roles to construction and trucking.
How to Calculate Your Billable RateTurn a loaded cost into the hourly price you must charge to hit your profit goal.
The cost components
Employer Payroll Taxes ExplainedSocial Security, Medicare, FUTA, and SUTA — what you pay on top of wages.
Workers' Compensation Cost by TradeHow comp premiums are priced and typical rates by trade and industry.
Employee Benefits Cost BreakdownWhat health, dental, disability, and retirement benefits really cost you.
The Real Cost of Paid Time OffWhy PTO raises your true hourly cost and how productive hours fix it.
What Overtime Really CostsThe 1.5× premium, the taxes on top of it, and when overtime beats hiring.
Hiring decisions
How Much Does It Cost to Hire?Recruiting, onboarding, training, and the hidden productivity ramp.
Small Business Guide to Hiring CostThe full first-year cost of a new hire and whether you can afford one.
W-2 Employee vs 1099 ContractorCompare an employee and a contractor on a true, apples-to-apples basis.
Salary vs Hourly: True CostHow the two pay structures compare once you load them fully.