Accounting Manager only · Accounting · Calculating Labor Burden
Wage is not labor cost
If you price jobs on $20 an hour because that is the wage, you crash the plane. Labor burden is everything else: taxes, insurance, time off, the hours you pay when they are not producing. Miscalculations can be fatal.
Jobs that 'make money' on wage and lose money on burden are how busy companies go broke.
Accounting
Tactics by seat
Accounting Manager
- Publish a true burdened rate for each class of employee. Update it when benefits or comp change.
- Make Sales and Production use the burdened number in estimates and crew-week math.