True Employee Cost Calculator
Calculate the real, fully-burdened cost of a field technician — not just their wage. Use this to set accurate billing rates and avoid underpricing jobs.
Employee Details
50 weeks = 2 weeks PTO / holidays
Typical: 12–14% (FICA 7.65% + state unemployment)
Why Your Billing Rate Must Be Much Higher Than Your Wage
Most contractors make the mistake of setting their billing rate based on wage alone. If you pay a tech $25/hour and bill at $50/hour, you're not making $25/hour in profit — you may be losing money. The true cost of an employee is typically 1.4–1.7× their wage before any overhead or profit is applied.
Here's a rough breakdown of what employer costs add on top of a $25/hour wage:
- Payroll taxes (FICA, FUTA, SUTA): +$3.15/hour
- Workers comp insurance: +$1.50–$4/hour (varies by trade)
- Health insurance employer share: +$2.50–$5/hour
- Vehicle and fuel: +$3–$6/hour
- Tools and equipment: +$1–$2/hour
- True burdened cost: $36–$45/hour at $25 wage
Then add overhead (insurance, office, marketing — typically 20–30% of revenue) and desired net profit (10–20%), and your billing rate for a $25/hour tech should be $65–$90/hour, not $50/hour.
What is the typical burden rate for a field technician?
The burden rate (total cost ÷ base wage) for field technicians typically runs 1.35–1.60×. A tech earning $25/hour typically costs $34–$40/hour all-in before overhead. Higher in trades with high workers comp classifications (roofing, excavation) or if providing employer-paid health insurance.
What FICA rate should I use for payroll taxes?
Employer FICA is 7.65% (6.2% Social Security + 1.45% Medicare). Add FUTA (0.6% on first $7,000 of wages) and your state's SUTA rate (typically 1–4%) for a total employer payroll tax burden of 9–12%. Use 12.5% as a safe starting estimate.
Should I include a vehicle allowance for techs who use their own vehicles?
Yes — if techs use personal vehicles, the IRS standard mileage rate (67 cents/mile in 2024) or a monthly vehicle allowance should be included in your cost model. High-mileage techs driving 20,000+ miles/year represent $13,400+ in vehicle expense at the standard rate.