You know how to calculate labor burden in construction. Take your direct wages, add payroll taxes, workers’ compensation, benefits, insurance, overhead – multiply it all together, and you get your fully burdened rate. The formula isn’t complicated.
Here’s the problem: you’re calculating labor burden costs on inaccurate base data.
Most construction companies can recite the labor burden formula in their sleep. They know payroll taxes run 15-20%. They know workers’ comp varies by trade and state. They’ve got spreadsheets with burden rates by classification. But those formulas depend entirely on the accuracy of the base labor hours feeding them.
If you want a step-by-step framework for capturing clean hours and turning them into job-cost-ready numbers, see our complete construction labor cost tracking guide.
A 5% error in your base hours becomes a 5% error in your labor burden calculation. When manual timesheets introduce variance of 5-15%—from rounded entries, memory-based reporting captured days after work completes, and workers clocking in for absent colleagues—your burden calculations aren’t slightly off. They’re systematically inaccurate across every job, every worker, every cost code.
This isn’t a calculation problem. It’s a data quality problem.
The issue isn’t math competency. It’s that manual time entry systems introduce structural variance that compounds through your burden calculations, affecting project profitability, cash flow, and your company’s ultimate success.
Labor Burden in Construction: Definition and Core Components
Labor burden in construction represents all indirect labor costs and additional expenses beyond direct wages. While construction workers might earn $25 per hour in base pay, the total hourly cost to employ that worker typically ranges from $32 to $37.50 per hour when you account for labor burden.
Component
% of Wages
What's Included
Labor burden encompasses:
Payroll Taxes (15-20% of wages)
These mandatory costs included:
- Federal Insurance Contributions Act (FICA): 7.65% for Social Security and Medicare
- Federal Unemployment Tax Act (FUTA): 0.6% on the first $7,000 of wages
- State unemployment insurance (SUTA): varies by state, typically 2-5%
Workers’ Compensation Insurance (5-25% of wages)
A significant expense that varies dramatically by trade classification:
- Office workers: 0.5-2%
- Carpenters: 10-15%
- Roofers: 25-40%
- Electrical work: 5-10%
Employee Benefits and Insurance (10-25% of wages)
Benefits employees receive include:
- Health insurance premiums
- Retirement benefits (401k matching)
- Paid time off (sick pay and vacation pay)
- General liability insurance allocation
Overhead Costs and Equipment (5-15% of wages)
These indirect expenses include:
- Tools and equipment
- Safety gear and PPE
- Training and certifications
- Vehicle costs
- Facility allocation
Here’s what this looks like in practice: A carpenter earning $25/hour in hourly wage has fully burdened labor costs of $35/hour. That extra $10 in labor expenses breaks down to approximately $4 in payroll taxes, $3 in workers’ comp, $2 in employee benefits, and $1 in equipment and overhead allocation.
The calculation is straightforward. The challenge is determining whether that carpenter actually worked 40 labor hours or 37.5 hours – because that 2.5-hour difference multiplied by $35 represents $87.50 per worker per week in variance that impacts project budgets.
When Labor Burden Rates Actually Matter (Bidding, Job Costing, and T&M)
Labor burden rates determine profitability in three critical scenarios where calculating labor burden costs accurately makes the difference between profit and loss:
Estimating and Bidding
Your bid accuracy depends on your labor burden calculation. A 5% underestimate on a $2 million project represents $100,000 in variance before the first shovel hits dirt. Most construction companies working on 3-5% margins find this level of error difficult to absorb – it creates cost overruns that strain cash flow.
This is where data quality issues surface first. When you’re bidding based on historical job costs built on inaccurate hours, you’re perpetuating variance into future bids and creating inaccurate estimates.
Job Costing and Variance Analysis
Real-time job costing requires real-time tracking of all labor related costs. When you’re comparing project budgets to actuals, you need to know:
- Actual labor hours worked (not rounded estimates)
- Actual workers on site (not who was scheduled to be there)
- Actual classifications (apprentice vs. journeyman rates affect employee compensation)
Manual time entry captured days after work completes typically can’t deliver this level of precision for making informed decisions.
Time and Material Billing
T&M billing often centers on the true cost of labor. General contractors and owners scrutinize hours because they’re paying your fully burdened rate – not just the correct wage. When you bill $45/hour for a worker, they expect documentation of those hours.
According to contractors using biometric time tracking to eliminate manual entry errors, common T&M disputes stem from questions about whether workers were actually on-site for the hours billed. Facial verification and geo-fencing provide documentation that manual timesheets typically cannot.
Syber Concrete, a specialty contractor in Texas, described it this way in their case study: “We would have people who would sign in employee one, employee two, employee three, four, et cetera, and those people weren’t physically there. It would be all in the same handwriting, all the same, start time and the end time.“
When billing T&M for work performed by hourly subcontractors, they needed verification-backed documentation rather than estimates that could lead to billing disputes.
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How to Calculate Labor Burden for Construction (Step-by-Step)
Calculating labor burden costs follows a consistent formula, but the accuracy depends entirely on the quality of inputs feeding your automated calculations.
The Formula:
Labor Burden Rate = (Total Labor Costs – Direct Costs) / Direct Costs
Example Calculation:
- Direct costs (wages): $50,000
- Payroll taxes: $8,500 (17%)
- Workers’ comp: $6,000 (12%)
- Employee benefits: $7,500 (15%)
- Overhead costs allocation: $3,000 (6%)
Total labor costs: $75,000 Labor burden: $75,000 – $50,000 = $25,000 Labor burden rate: $25,000 / $50,000 = 50%
Fully burdened hourly rate: $25/hour × 1.50 = $37.50/hour
This calculation is simple. What’s more complex is ensuring that $50,000 in direct costs accurately reflects actual hours worked—which is critical for managing costs effectively.
If manual timesheets overstate hours by 10% (which can occur with rounded entries, buddy punching, and delayed submission), your actual direct wages were $45,000 – not $50,000. But your payroll taxes, workers’ comp, and benefits were calculated on the $50,000 figure.
Now your labor burden rate appears to be 50% when it should be 56%. That 6-point variance may not seem significant until you multiply it across 200 construction workers over 12 months – impacting business costs across your entire operation.
Stop calculating labor burden on inaccurate data. See how SmartBarrel delivers 100% accurate base hours.
Average Labor Burden Rate in Construction: Industry Benchmarks by Trade
Average labor burden rates in construction typically range from 35% to 60%, but this varies significantly by trade, geography, and workforce structure. Understanding these benchmarks helps you accurately price your work and identify cost saving opportunities.
By Trade Classification
- Electrical contractors: 40-50% (moderate workers’ comp, higher skill premiums)
- Concrete contractors: 35-45% (physical labor classifications, seasonal variations)
- MEP contractors: 45-55% (specialized certifications, indoor work can reduce some insurance costs)
- Roofing contractors: 50-70% (highest workers’ comp rates due to fall risk)
- Drywall contractors: 35-45% (relatively lower workers’ comp, large crew dynamics)
Geographic Variations
Workers’ compensation rates vary by state, representing a variable cost component that impacts your construction business. California, New York, and Illinois typically have the highest rates, while states like Indiana, North Dakota, and Arkansas tend toward lower rates. According to the National Academy of Social Insurance, workers’ compensation costs as a percentage of payroll can vary by 300% between states for the same trade classification.
Union vs. Non-Union
Union labor burden rates typically run 10-20 percentage points higher due to additional costs including:
- Negotiated benefit packages
- Pension and retirement benefits contributions
- Apprenticeship program funding
- Healthcare trust fund contributions
A union electrician might carry a 55% burden rate while a non-union electrician in the same market runs 42% – a significant expense difference.
Why “Average” Can Mislead: Industry averages provide useful ballpark estimates, but your actual labor burden depends on all the components of your operation:
- Your specific workers’ comp experience modification rate
- Your benefit package design
- Your equipment and tool allocation methods
- Your overhead structure
- Whether you use temp labor or direct hires
The Three Inputs for Calculating Labor Burden
Base Labor Costs: Where Accuracy Starts (or Fails)
Base labor costs represent direct wages paid to construction workers. This should be the most straightforward number in calculating labor burden costs. In practice, it often isn’t.
Variance Type
What Happens
Financial Impact
Manual time entry introduces structural variance in workforce management:
Rounding Variance: Most paper timesheets use 15-minute increments. Workers round up. A 7-hour 45-minute day becomes 8 hours. Across 200 workers over 50 weeks, that’s 2,500 hours of overstated time – approximately $62,500 at $25/hour base rate, or $93,750 when fully burdened at 50%. This variance compounds into cash flow challenges.
Memory-Based Entry: When foremen fill out timesheets on Friday for Monday through Thursday, they’re working from memory. Research on time estimation shows humans typically overestimate time spent on administrative tasks by 15-20%. In construction, this often translates to inflated hour counts that don’t reflect the true cost of employing workers.
Buddy Punching: When workers clock in for absent colleagues, this creates phantom labor costs. You’re calculating burden on hours that weren’t actually worked – paying for labor hours you didn’t receive.
The challenge isn’t improving spreadsheet formulas. It’s eliminating manual variance at the source. When workers check in with facial verification and geo-fencing confirms they’re physically on-site, your base hours reflect actual presence – not estimates. This approach is essential for reducing labor costs without sacrificing project profitability.
Indirect Employee Costs: What Gets Added On
Indirect labor costs are where labor burden becomes more complex, but these numbers are typically verifiable through your accounting system and critical for understanding the total hourly cost of employing workers.
Payroll Tax Breakdown
The current FICA rate is 7.65% (6.2% Social Security + 1.45% Medicare) on wages up to $160,200 for Social Security (2023 threshold). According to the IRS, FUTA is 6% on the first $7,000, but most employers receive a 5.4% credit, reducing it to 0.6%.
State unemployment insurance (SUTA) varies. California runs 1.5-6.2% on the first $7,000. Texas runs 0.31-6.31% on the first $9,000. Your specific rate depends on your claims history – these additional expenses represent non-negotiable mandatory costs.
Workers’ Compensation Complexity
Workers’ comp is calculated per $100 of payroll and varies by classification code. The same contractor might have:
- Office staff: $0.50 per $100 (0.5%)
- Project managers: $2.00 per $100 (2%)
- Carpenters: $12.00 per $100 (12%)
- Roofers: $35.00 per $100 (35%)
Your experience modification rate (EMR or MOD) adjusts these base rates. A contractor with effective safety programs might have a 0.75 MOD, reducing their rates by 25%. A contractor with frequent claims might have a 1.3 MOD, increasing rates by 30% – a significant expense that affects all labor related costs.
Benefits Package Variables
This is the most discretionary component of employee compensation:
- Health insurance: $500-$1,200 per employee per month
- 401(k) matching: typically 3-6% of wages
- Paid time off (sick pay and vacation pay): 80-120 hours annually (approximately 4-6% of annual hours)
- Training and certifications: $500-$2,000 per worker annually
Your Fully Burdened Labor Rate: Putting It All Together
Your fully burdened labor rate (also called fully burdened labor costs) is the sum of base wages plus all indirect expenses, expressed as either:
- A percentage markup (e.g., 50% burden rate)
- A dollar amount per hour (e.g., $35/hour fully burdened)
This rate should be calculated:
- By worker classification (apprentice, journeyman, foreman)
- By trade (if you run multiple divisions)
- By project type (prevailing wage vs. non-prevailing, union vs. open shop)
- By geography (if multi-state, workers’ comp varies)
A common approach is using a single company-wide burden rate. An electrical contractor running both prevailing wage commercial work and residential service calls typically can’t use the same burden rate for both – the wage scales, workers’ comp classifications, and benefit structures differ substantially.
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Why Accurate Labor Burden Matters for Construction Profitability
Labor burden accuracy influences whether you make money or experience losses on every project you bid – it’s fundamental to your construction business success.
Bidding Precision
Most construction companies operate on 3-8% net profit margins. A 5% error in labor burden calculation on a $3 million project represents $150,000 in variance – potentially eliminating profit and creating a loss.
The compounding effect is more significant: if you’re systematically underestimating burden by 5 points (believing you’re at 45% when you’re actually at 50%), you’re underbidding every project. You win more work because your bids appear more competitive – but projects may not generate expected margins, affecting cash flow and business sustainability.
Job Costing Reliability
Job costing drives future estimating. When your job cost data is built on hours that contain variance and misapplied burden rates, you’re teaching your estimating system to replicate the same patterns – perpetuating inaccurate estimates across your operation.
Construction companies that achieve consistent profitability typically share one characteristic: their job cost data is reliable enough to inform informed decisions. That requires accurate base hours, accurate burden allocation, and timely data flow.
T&M Billing Documentation
When you bill T&M work, you’re asking the GC or owner to pay your fully burdened rate. They will typically question it, dispute it, and request backup documentation of the true cost.
Manual timesheets often don’t provide sufficient verification. Facial verification, geo-fencing, and timestamped photo documentation typically do.
Contractors handling T&M billing report that a common challenge is documenting that workers were actually on-site for the hours billed. When your backup is a foreman-signed paper timesheet filled out Friday afternoon for all of last week, you’re in a weaker negotiating position – and may need to absorb costs you’re entitled to recover.
Reduce T&M billing disputes with verification-backed time documentation. See how SmartBarrel works.
How to Manage and Control Your Construction Labor Burden
Fix Your Time Data First (Then Calculate Burden)
Most contractors approach labor burden from the calculation side. They focus on refining formulas while the data quality feeding those formulas receives less attention.
The calculation is relatively simple. The data collection presents more challenges.
Manual processes can introduce variance that affects labor expenses:
- Workers round to nearest quarter hour
- Foremen estimate hours for workers who forgot to clock out
- Buddy punching creates phantom workers
- Paper timesheets get lost, requiring reconstruction from memory
- Time entry happens days after work completes
These aren’t primarily training issues or compliance problems. They’re structural limitations of manual systems that make it difficult to capture the true cost of your workforce.
Automated time capture addresses variance at the source and provides cost saving opportunities:
- Workers check in when they arrive (not when they remember)
- Facial verification prevents buddy punching
- Geo-fencing confirms physical presence on site
- Data flows in real-time to job costing and payroll
- No manual transcription, no rounding, no estimation
Reduce Payroll Cost Waste
Payroll waste typically comes from three sources: overpayment due to time errors, overtime mismanagement, and classification errors. Managing costs effectively requires addressing all three.
Waste Source
The Problem
Financial Impact
Solution
Time Error Reduction: Even small systematic errors compound. A 2% overstatement in labor hours across 150 workers earning an average of $28/hour fully burdened equals approximately $168,000 annually (150 workers × 2,080 hours × 2% × $28). This represents variance that most construction companies don’t identify through manual review.
Real-time time tracking identifies errors immediately – not on Friday when you’re processing payroll, enabling cost saving opportunities before they affect cash flow.
Overtime Control: Unplanned overtime carries a burden rate premium. If your base burden is 45%, overtime hours (paid at 1.5× or 2×) carry that same burden percentage on the premium portion.
A worker earning $25/hour with 45% burden costs $36.25/hour for straight time. At overtime (1.5×), the calculation is:
- Base hour: $25 × 1.5 = $37.50
- Burden: $37.50 × 0.45 = $16.88
- Fully burdened OT rate: $54.38/hour
Real-time visibility into hours worked allows you to manage overtime proactively instead of discovering it Friday afternoon when payroll runs – protecting project budgets and profit margins.
Classification Accuracy: Workers’ comp and union rates vary by classification. An apprentice electrician and a journeyman have different burden rates. Ensure your workforce management system captures the correct wage classification at check-in to avoid cost variance in employee compensation.
Strategic Use of Contract Workers vs. W-2 Employees
Contract workers (1099) shift burden calculations. You pay their rate without adding payroll taxes, workers’ comp, or benefits. The apparent labor burden is zero.
The actual cost difference is more nuanced when considering the true cost of employing workers:
W-2 Employee at $25/hour:
- Base hourly wage: $25.00
- Payroll taxes: $4.25
- Workers’ comp: $3.00
- Employee benefits: $3.75
- Overhead costs: $1.50
- Fully burdened: $37.50/hour
1099 Contractor:
- Rate: $40.00/hour
- Your labor burden: $0
- Total cost: $40.00/hour
The 1099 contractor appears less expensive ($40 vs. $37.50). But this comparison doesn’t account for:
- 1099 contractors control their own schedule and quality standards
- Training and quality control challenges
- Reduced loyalty during busy periods (they may leave for higher rates)
- Potential misclassification risk
The strategic question isn’t “which is less expensive” but “which provides better control and predictability” for project profitability.
For core crews working year-round, W-2 with full burden often makes sense. For surge capacity during peak periods, 1099 or temp labor may be more appropriate. The challenge is treating them as interchangeable without understanding the burden trade-offs and impact on business costs.
The Real Cost of Employee Turnover on Labor Burden
Employee turnover doesn’t just interrupt productivity – it increases labor burden and creates additional costs that impact your company’s ultimate success.
Onboarding Costs
New workers require additional expenses:
- HR processing and background checks: $200-500
- Safety programs training and certifications: $500-1,000
- Tool and equipment setup: $300-800
- Supervision time during learning curve: 40-80 hours
For a position with a fully burdened rate of $35/hour, replacing a worker costs $3,000-$4,000 in direct burden before accounting for reduced productivity during ramp-up – a significant expense that affects cash flow.
Workers’ Comp Impact
High turnover correlates with higher workers’ comp claims. New workers typically have accident rates 2-3× higher than experienced workers during their first 90 days. Each claim can increase your EMR, raising future workers’ comp costs across your entire workforce – compounding indirect expenses.
Institutional Knowledge Loss
Experienced workers typically work faster and make fewer errors. A journeyman electrician might complete a task in 6 hours that takes an apprentice 9 hours. The base wage difference might only be $5/hour, but the productivity difference is 50%.
Reducing turnover can reduce effective labor burden by improving productivity per dollar spent – delivering cost saving opportunities through retention rather than wage reductions.
Conducting Your Construction Labor Burden Assessment: Best Practices
Technology Solutions for Labor Burden Accuracy
Labor burden accuracy requires addressing manual processes and administrative tasks at three stages:
Stage
Problem
Solution
Impact
Time Capture
Automated biometric time tracking removes estimation from the equation. Workers check in when they arrive – not when they remember to write it down. The data flows immediately to job costing, creating real-time visibility into labor costs and supporting informed decisions.
Data Integration
Manual data transfer between systems can introduce errors and create administrative tasks that consume time. Time data should flow automatically from field capture to:
- Payroll processing
- Job costing
- ERP systems
- Financial reporting
SmartBarrel integrates directly with Procore, Foundation, Vista, and CMiC – eliminating the manual export/import cycle that can create version control issues, data errors, and cost variance that impacts project profitability.
Calculation Automation
Burden rates should be configured by worker classification, project type, and geography. The system applies the correct burden automatically based on who checked in, where they checked in, and what classification code they hold – using automated calculations instead of manual spreadsheets.
This removes the end-of-week challenge of verifying whether the correct burden rate was applied to prevailing wage hours versus non-prevailing hours, and ensures you can accurately price work based on the true cost.
Project-Specific and External Variables in Burden Calculations
Not all projects carry the same burden rate. Understanding these variables is essential for managing costs across diverse project types.
Prevailing Wage Work
Davis-Bacon and state prevailing wage requirements change your labor burden calculation. Prevailing rates include both base wages and fringe benefits. Your burden calculation needs to:
- Separate base wages from fringes
- Track certified payroll hours separately
- Apply different workers’ comp rates (higher wage base typically means higher premium)
- Handle multi-state variations in prevailing wage schedules
Union vs. Open Shop
Union projects carry higher burden due to negotiated benefit packages, pension contributions, and apprenticeship fund payments. These need to be tracked separately from open shop work to maintain accurate project-level profitability and avoid inaccurate estimates.
Multi-State Operations
Operating in multiple states means multiple workers’ comp jurisdictions, varying unemployment insurance rates, and different prevailing wage schedules. Your burden calculation needs state-level granularity to capture the true cost of your multi-state workforce.
If you treat allowances inconsistently, your burden calculations get distorted, this explanation of when per diem is taxable helps avoid costly assumptions.
Weather and Seasonality
Weather impacts productivity, which affects your effective labor burden. If winter weather reduces productivity by 25%, your labor burden per unit of work increases – even though the rate per hour stays constant. These factors should be considered when developing project budgets.
Contractors who track productivity variance by season often adjust their burden calculations for winter estimates accordingly – making informed decisions based on actual seasonal costs.
Labor Burden Review Frequency: Quarterly vs. Continuous Monitoring
Labor burden isn’t static. Review it at two levels to ensure accuracy in calculating labor burden costs:
Quarterly Formal Review
Every quarter, recalculate burden rates based on:
- Actual workers’ comp experience (has your MOD changed?)
- Insurance renewals and rate changes
- Benefit cost adjustments (health insurance premiums)
- Union contract negotiations
- New equipment purchases affecting overhead allocation
This formal review ensures you can accurately price future work based on current business costs.
Continuous Monitoring
With real-time job costing, monitor labor costs daily. You’re not recalculating burden rates daily – you’re watching for variance that may indicate issues:
- Unexpected overtime patterns
- Productivity changes on specific projects
- Classification errors creating incorrect burden application
- Time tracking gaps creating incomplete cost data
The formal quarterly review updates your rates. The continuous monitoring identifies operational issues before they compound into financial challenges – protecting cash flow and project profitability.
According to the Associated General Contractors of America, contractors who review labor burden quarterly vs. annually typically show 12-18% better cost control and more accurate estimating, leading to improved project profitability.
Frequently Asked Questions About Labor Burden in Construction
What's the difference between labor burden and direct labor costs?
Direct costs are the gross wages paid to construction workers (hourly rate × hours worked). Labor burden encompasses all additional costs beyond gross wages – payroll taxes, workers’ compensation insurance, employee benefits, equipment allocation, and overhead costs. If a worker earns $25/hour in direct wages but the total hourly cost to employ them is $37.50/hour, the labor burden is $12.50/hour or 50%.
The distinction matters because bids, job costing, and T&M billing should include fully burdened rates to accurately price work. Contractors who estimate using only direct costs may systematically underbid work by 35-60% – creating cost variance that affects profitability.
How do payroll taxes impact construction labor burden calculations?
Payroll taxes add approximately 15-20% to labor expenses through FICA (Social Security and Medicare at 7.65%), FUTA (federal unemployment at 0.6% after credits), and SUTA (state unemployment insurance, typically 2-5%). These are mandatory costs that apply to all W-2 employees.
The impact accumulates: a $50,000 annual payroll generates $7,500-$10,000 in payroll taxes – a significant expense. When multiplied across 200 workers, that represents $1.5-$2 million in annual payroll tax burden that should be factored into billing rates and job costing to protect project profitability.
Unlike optional benefits, payroll taxes are non-negotiable mandatory costs included in all labor related costs. They form the foundation of your labor burden calculation.
What is a fully loaded labor rate in construction?
A fully loaded labor rate (also called fully burdened labor costs) is the total hourly cost to employ a worker, including base wages plus all burden components. It represents the true cost you need to charge to cover all labor-related costs and maintain project profitability.
Calculation example:
- Base hourly wage: $25/hour
- Payroll taxes (17%): $4.25
- Workers’ comp (12%): $3.00
- Employee benefits (15%): $3.75
- Overhead costs (6%): $1.50
- Fully loaded rate: $37.50/hour
This is the rate you use for job costing, estimating, and T&M billing. Using a lower rate means you may not be recovering your full costs – an approach that can lead to inaccurate estimates and reduced profit margins.
What's considered a standard labor burden rate?
There is no single “standard” labor burden rate in construction – it varies by trade, geography, and workforce structure. Most construction companies see typical ranges including:
- Electrical contractors: 40-50%
- Concrete contractors: 35-45%
- MEP contractors: 45-55%
- Roofing contractors: 50-70%
- Drywall contractors: 35-45%
Your specific rate depends on your workers’ comp experience mod, benefit package design, union vs. non-union workforce, and geographic location. Two electrical contractors in the same city might have burden rates that differ by 10-15 points based on these factors – representing significant differences in business costs.
Use industry averages as a starting point, but calculate your actual burden rate based on your specific costs to make informed decisions and accurately price your work.
The Bottom Line: Labor Burden Starts with Data Quality
You can calculate labor burden accurately and still arrive at incorrect conclusions if the underlying data contains variance.
The formula is straightforward. The challenge is ensuring the data feeding that formula reflects actual work performed. Manual timesheets, rounded hours, buddy punching, and memory-based estimates can introduce 5-15% variance in base labor hours. That variance multiplies through your burden rate, creating systematic errors in job costing, estimating, and T&M billing – the kind of cost variance that affects project profitability.
Contractors operating on 3-8% margins find it difficult to absorb 5-15% errors in labor costs. The solution isn’t more complex calculations – it’s addressing manual data entry and administrative tasks at the source.
When construction workers check in with facial verification the moment they arrive on site, when geo-fencing confirms their physical presence, when time data flows in real-time to job costing and payroll through automated calculations – calculating labor burden costs becomes accurate by design. This approach helps you reduce labor costs without sacrificing the correct wage or reducing employee benefits.
Address your time data quality. Then your labor burden calculations will reflect actual costs. This is the foundation of managing costs effectively and supporting your company’s ultimate success.
Want to see how accurate time tracking changes your labor burden calculations?
Request a SmartBarrel demo today and see real-time labor cost tracking in action – discover cost saving opportunities you may not have identified.
