We now have a new tool available called the employee wizard! This incredible feature is designed to guide you through each and every step necessary to accurately calculate your employee's burden costs.
The employee wizard is specifically tailored to make your life easier by streamlining the process and ensuring that you have all the information you need at your fingertips. No longer will you need to worry about manually calculating these costs or spending valuable time searching for the right formulas. With just a few simple clicks, the employee wizard will take care of everything for you.
Not only will this tool save you time and effort, but it will also guarantee accuracy in your calculations. We understand that accuracy is of utmost importance when it comes to managing employee burden costs, and the employee wizard is here to assist you every step of the way.
So, why wait? Give the employee wizard a try today and experience the convenience and efficiency it brings to your workload. Simply log in to TurboBid and navigate to the employee section to find the wizard waiting for you.
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.
This video represents TurboBid's Employee Wizard. Click the Play button and explore the wizard by clicking on the red outlined buttons or symbols.