Labor Burden Calculator for Cleaning Companies

How the burdened rate is calculated

Burdened rate = base wage + every employer cost per hour worked. The multiplier is the burdened rate divided by the wage. Each line is worked out as follows:

• FICA: 7.65% of the annual paid wages (Social Security and Medicare, employer share), spread over the hours worked after paid time off.
• FUTA: 0.6% of the first $7,000.00 each employee earns a year, spread over the hours worked after paid time off.
• SUTA: your state's new-employer rate on the year's wages up to its taxable wage base, spread over the hours worked after paid time off. A state with a high wage base costs more per hour at the same rate, up to what the employee earns in a year.
• Employer paid family / medical leave: the state employer contribution on annual paid wages up to the program's cap, spread over worked hours. Employee payroll deductions are excluded.
• Workers comp: payroll-based policies use your janitorial rate as a percent of the wage, times your experience modification rate. Washington defaults use the employer hourly amount × EMR plus fixed pension per worked hour; the fixed pension is never multiplied by EMR. Policy classifications vary by state.
• Health insurance: your monthly cost per employee over 173 hours a month.
• Paid time off: wages paid for 8-hour days off, spread over the hours actually worked.

Assumptions

• One full-time employee paid for 2,080 hours a year, including paid time off. Paid days off reduce the hours worked; they do not add to annual wages.
• Wages up to $75 an hour, well below Social Security's annual wage base, so FICA's 7.65% applies to every dollar.
• SUTA uses the state's new-employer rate on file; your assigned rate may differ.
• Workers comp defaults to the midpoint of the janitorial range on file, except in Washington, which uses the employer hourly state default. Enter your policy's payroll percentage to override the state default.
• State paid leave estimates assume 10–49 employees and use the higher-obligation tier where that range spans more than one rate. Washington's employer share starts at 50 employees, so it is not charged here. Approved private plans and employers outside this size range can have different costs.
• FUTA uses the standard 0.6% net rate. In a state with a federal credit reduction (IRS Schedule A, Form 940), FUTA costs more.
• FICA, FUTA, SUTA and employer paid leave premiums include paid leave wages. Workers comp percentages use the base hourly wage; Washington defaults use worked hours and keep fixed pension outside EMR; additional workers comp on paid leave is not added. Disability insurance uses your net annual employer cost, or an explicitly selected NJ state-fund new-employer estimate with its employer wage cap. The estimate replaces the annual amount; use actual costs for assigned experience rates or approved private plans. Other state employer levies and local payroll taxes are not yet included. A BidLoom bid counts the same choice in the same way.
• Oregon WBF is a separate cost per hour worked, excluding paid leave. Default employee withholding is half of the total assessment; choose 0% if the employer covers all. Any covered employee portion is included in taxable wages for payroll taxes, once. This estimates bid cost, not payroll remittances.
• Every line is rounded to the cent, as in a BidLoom bid.
• Vermont child care contribution applies to all wages for work in Vermont, including paid leave. The default withholds the permitted 25% of the total contribution from employees; enter 0% if the employer pays it all, or your actual partial share. This field is a share of the contribution, not a percentage of wages. The employer cost appears separately; other state/local levy work remains pending.
• 2026 state data includes approximate defaults, reviewed October 9, 2026. Rates change every January: check your state's current rate and wage base.

For worked examples and how the burden feeds a bid price, read How to calculate labor costs for cleaning bids.