Labour burden
Also called: Burden, Fully loaded labour cost, Labor burden
The true cost of an hour of somebody's time, which is their wage plus everything you pay because they are on your payroll. Which items belong in the burden depends on where you employ people — employer payroll taxes, workers' compensation premiums, statutory holiday and vacation pay, and any mandatory benefits all differ by country, province and state. Pricing off the bare wage understates every job with a person on it.
This one depends on where you work
The rule behind labour burden is set by the province or state the work is in, and the versions do not agree with one another. We have described the shape of it and deliberately not named a deadline, a cap or a percentage — check the rule where you work, or ask someone who practises there.
In FieldQuo — Job costing
Hours clocked against a job feed FieldQuo's job costing, so labour lands on the job it was spent on rather than in a monthly lump.
Related terms
- OverheadWhat the business costs to run whether or not you work today — insurance, the van payment, the phone, the accountant, the software, the storage unit.
- Job costingPutting the real labour, materials and expenses of a finished job against what you charged for it, so you know what that job made.
- Employee vs. subcontractorWhether someone who works for you counts in law as your employee or as an independent business you hired.
- Workers' compensationNo-fault cover that pays a worker who is injured on the job, funded by premiums on your payroll.
More in pricing, cost and profit
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