Burden rate: definition, example, and why it matters
Burden is typically 20–35% on top of the base wage. Includes payroll taxes (FICA, FUTA, SUTA), workers' comp, health insurance, and PTO.
- Short definition. The fully loaded cost of an employee — wage plus taxes, insurance, and benefits.
- Category. Burden rate is a trades term used by service businesses when billing customers.
- How Glo Invoice handles it. Glo Invoice builds burden rate into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does burden rate mean?
Burden is typically 20–35% on top of the base wage. Includes payroll taxes (FICA, FUTA, SUTA), workers' comp, health insurance, and PTO.
