"Burden Rate" pertaining to employment refers to the costs above the employee wages that are paid by the employer. These costs may include but are not limited to: social security insurance, medicare, workers compensation, unemployment insurance, other employer taxes and benefits. For example, a staffing company may determine that its "burden rate" is 14%. The hourly rate of $10.00 would be
. multiplied by 1.14 which equals $11.40 (this is the total hourly employer costs for putting an employee to work). The staffing company may have a bill rate of $15.00, the profit would be $3.60 hourly.
