1. What is Fully Burdened Labor Rate?

The Fully Burdened Labor Rate (FBLR) represents the total cost of an employee's labor, including not only their base wage but also all associated overhead costs such as benefits, taxes, insurance, and other indirect expenses.

2. How Does the Calculator Work?

The calculator uses the FBLR formula:

Where:

• \( BR \) — Base Rate ($/hr)
• \( BF \) — Burden Factor (decimal)

Explanation: The burden factor represents the percentage of additional costs beyond the base rate that are associated with employing a worker.

3. Importance of FBLR Calculation

Details: Accurate FBLR calculation is crucial for project costing, budgeting, contract pricing, and understanding the true cost of labor in business operations.

4. Using the Calculator

Tips: Enter the base hourly rate in dollars and the burden factor as a decimal (e.g., 0.30 for 30%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is typically included in the burden factor?
A: The burden factor typically includes payroll taxes, benefits (health insurance, retirement), workers' compensation, training costs, and other employment-related expenses.

Q2: How is the burden factor determined?
A: The burden factor is calculated by dividing total indirect labor costs by total direct labor costs, usually expressed as a percentage or decimal.

Q3: Why is FBLR important for contractors?
A: Contractors use FBLR to accurately price their services, ensuring they cover all labor-related costs and maintain profitability on projects.

Q4: Does FBLR vary by industry?
A: Yes, burden factors can vary significantly by industry, company size, geographic location, and the specific benefits package offered to employees.

Q5: How often should FBLR be recalculated?
A: FBLR should be reviewed and updated regularly, typically annually or whenever there are significant changes in labor costs, benefits, or tax rates.