What is labor burden?
Labor Burden. The full cost of an employee beyond the base wage — payroll taxes, workers' comp, insurance, and non-billable time. A $30 wage commonly costs $40–$50 burdened.
Why it matters to your pricing
Bidding off the raw wage instead of the burdened rate loses money on every hour. Calculate your burden once and use it in every estimate.
This is a general educational definition, not financial or legal advice. Confirm anything regulated with your accountant or state board.