Job Costing: Set Up Resources for Payroll Burden

To help determine the payroll burden for employees and vendors, update the following settings for each.

  1. Go to Team > Employees and click an employee record.
  2. Click Edit.
  3. On the Edit Employee screen, click the “Payroll/Job Costing” tab. On the right side of the screen is where the Total Labor Burden Hourly Rate is noted.


    Labor Burden is the company’s cost for an employee, like Gross Pay + Taxes + Insurance, etc. See the example below for guidance.
  4. In the Costing Information section, type the labor burden into the Hourly Rate field.

Example: Calculate Labor Burden

Labor Burden is sometimes called Loaded Labor Rate and other variations. It means:  
Gross Hourly rate + Additional labor costs as shown in the table below.

The following example shows how to calculate your labor burden. Adjust all the factors to apply to your company. You may not need to use some of the factors below, but plug in what applies to determine the amount of money a resource is costing you.

Sample Company’s Total Financial Contribution for Employee with Annual Totals

Gross Pay

$28,000 (Gross weekly alone $13.46 hr.)

Workman’s Comp


Unemployment Insurance


Any other Insurances






Annual Total


Monthly based on 12 mo.


Weekly based on 52 wks.


Hourly based on 40 hrs.

  $14.97   This is your employee’s Labor Burden

Note: If you are unsure of how to calculate the labor burden for each employee, consult an accounting professional.

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