Employee Wizard

The employee wizard walks you through all of the steps required to accurately calculate your employee's burden costs.

Labor burden is the actual cost of a company to have an employee, aside from the salary the employee earns. Labor burden costs include benefits that a company must, or chooses to, pay for employees included on their payroll. These costs include but are not limited to payroll taxes, pension costs, health insurance, dental insurance, and any other benefits that a company provides an employee.

Company paid time off such as paid sick, holiday or training time must also be considered as part of the Labor Burden as it is a cost to the company.

Labor burden cost is important to compute and understand because it includes a variety of significant costs that are often viewed as company overhead, but are in fact, costs related to employment. Many businesses fail because they focus simply on payroll and payroll taxes, and neglect to consider the entire actual cost required to enable an employee to perform their work.

Overhead should be spread out over all of a company's income-generating employees based on the hours they work (Example: A part-time employee working 20 hours a week will absorb half as much company overhead as would a full-time employee at 40 hours per week.

Fully-burdened costs for individual employees can be expressed as a yearly total to provide an estimate of how much the company will spend that year on an employee. It can also be expressed as an hourly cost by dividing the total yearly cost by the number of hours the employee will work. This number is often 50% to 150% higher than the gross hourly wage. As costs are often used as the basis for pricing services or products, this is why it is so critical to obtain an in-depth understanding of the true cost of an employee.

Employee information

Employee Name or Classification

Employee Skill Level

Enter the employee's skill level compared to a 100% journeyman. This will add additional labor hours to the estimate due to the employee's lack of productivity.

Burden & Pay Rate

Employee Burden Group

Select the employee's burden group from the dropdown list. The hourly burden cost will be displayed. Click the "Open Burden Wizard" link to open the Burden Wizard so that you can edit the selected burden group if needed.

Date of Future Pay Rate Increase

Enter the date of the employee's pay rate increase.

Future Pay Rate Increase Amount

Enter the amount of the employee's pay rate increase. If the employee will be on a project while he receives an increase in his hourly pay rate, based upon the selected Project Start Date, Number of Units, and Units Per Week, the calculated pay rate increase will be added to the estimate.

Annual Hours

Hours Per Day

Enter the hours the employee will work per day.

Days Per Week

Enter the days this employee will work per week. This will calculate how many hours the employee works per week.

Months Per Year

Enter the months the employee will work per year. This will calculate how many hours the employee works per year.

This video represents TurboBid's Employee Wizard. Click the Play button and explore the wizard by clicking on the red outlined buttons or symbols.