Fully Burdened Worker Cost

Why this comes up

Pay rate is what a worker takes home, not what they cost you. Every hour on assignment also carries employer payroll taxes, workers' compensation, and any benefits or PTO you offer. Pricing off pay rate instead of this fully loaded number is one of the fastest ways to build a loss into a contract before you've set a single dollar of margin.

How we calculated this

Simple mode: Loaded Worker Cost = Base Compensation x (1 + Burden %)
Advanced mode: each burden component (Social Security, Medicare, FUTA, SUTA, workers' comp, benefits, PTO, other) computed separately and wage-base-capped, then summed and divided by annual hours

Worked example, simple mode: $25.00/hr base pay, 18% burden.

Loaded Worker Cost = 25.00 x 1.18 = $29.50/hr

Worked example, advanced mode: same $25.00/hr, 40 hrs/week, 52 weeks/year, 2026 federal rates, 3% SUTA on a $10,000 wage base, 3% workers' comp, $2.00/hr benefits.

Annual base comp = 25 x 40 x 52 = $52,000
Social Security = 52,000 x 6.2% = $3,224
Medicare = 52,000 x 1.45% = $754
FUTA = min(52,000, 7,000) x 0.6% = $42
SUTA = min(52,000, 10,000) x 3% = $300
Workers' comp = (52,000 / 100) x 3 = $1,560
Benefits = 2.00 x 40 x 52 = $4,160
Total annual burden = $10,040
Loaded worker cost = (52,000 + 10,040) / 2,080 hours = $29.83/hr (19.3% effective burden)

Simple mode applies one flat burden percentage. Advanced mode itemizes Social Security, Medicare, FUTA, SUTA, workers' compensation, benefits, and PTO separately using the 2026 federal payroll baseline, wage-base-aware so it does not overcharge burden once a worker's annual pay exceeds the Social Security or SUTA wage base. SeeMethodology for the full 2026 source figures.

What this means

• The effective burden rate in advanced mode (19.3% in the example) can land above or below your flat-mode assumption; if it's meaningfully different, your simple-mode pricing has been quietly off.
• FUTA and Social Security are wage-base capped, so their contribution to hourly burden shrinks the longer a worker stays on assignment within the same calendar year at the same agency. A flat percentage doesn't capture this; the advanced mode does.
• SUTA rate and workers' comp rate are yours specifically, based on your state and claims history, not a national average. Enter your actual current-year rates, not a guess.

Common mistakes

• Using a single flat burden percentage for the whole year on a worker whose pay will cross the Social Security or SUTA wage base partway through, overstating burden on the later pay.
• Applying a national-average SUTA or workers' comp rate instead of your agency's actual state- and class-code-specific rate.
• Forgetting benefits or PTO accrual entirely when they're a real cost you carry for this worker.

Frequently asked questions

When should I use simple mode instead of advanced?

Simple mode is fine for a fast directional estimate or an agency whose burden profile is genuinely stable across most of its workforce. Use advanced mode when you're setting a rate you'll hold to for a whole contract, or reconciling why a real assignment's margin came in different than priced.

Why does FUTA look so small?

FUTA applies only to the first $7,000 of a worker's annual pay, and the standard 5.4% credit brings the statutory 6.0% rate down to an effective 0.6% in most states. It's real, but small relative to Social Security and Medicare.

What if my state has a FUTA credit reduction?

Some states that haven't repaid federal unemployment-insurance loan balances face a reduced credit, raising their effective FUTA rate. Check your state's status before treating 0.6% as permanent; see Methodology for details.

Limitations

Uses the 2026 federal payroll baseline; SUTA and workers' compensation rates vary by state and industry classification and must be entered directly. This is not tax or payroll advice.

Next decision

• Turn this into the bill rate you need to charge
• See your minimum viable bill rate

Learn more

What Goes Into Staffing Labor Burden? — every component explained, with the 2026 federal figures and why wage bases matter.