General Contractor Employee True Cost Calculator
That $28/hr worker actually costs you $52 to $64 per hour. See the real math for general contracting.
Employee Pay
What you pay this general contracting employee per hour, before any employer costs.
Country
Mandatory employer costs change by country. Select yours.
Mandatory Employer Costs
These are required by law. You pay them on top of every dollar of wages.
Benefits You Provide
Toggle on the benefits you offer. Only include what you actually pay for.
Productivity
Not every paid hour is productive general contracting work. Factor in drive time, paperwork, breaks, and downtime.
True Employee Cost
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per productive hour
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per paid hour
$0
fully loaded annual cost
Adjust the inputs on the left to see your numbers update in real time.
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True Employee Cost for General Contracting Companies
General contracting has more workers comp variation than any other trade. A finish carpenter at 4% and a framer at 8% have very different true costs even at the same hourly rate. If you bid jobs using a single burden percentage for all your employees, you are overpricing some work and underpricing other work.
This calculator lets you see the true cost of each employee based on their actual classification, pay rate, and benefits. Use it to build accurate bids by labor type instead of using one blended rate that averages everything into mediocre pricing.
Mandatory Employer Costs for General Contracting
Mandatory costs for general contracting employees range from 25% to 40% on top of wages. The big variable is workers comp, which swings from 3% for finish work to 9% or more for framing and demolition. FICA adds 7.65%, state unemployment adds 2% to 5%. A $28/hr framer with 8% workers comp and standard payroll taxes costs $33.60 to $39.20/hr in wages plus mandatory costs alone.
The Productivity Gap in General Contracting
General contracting has the widest productivity gap because the work involves so much coordination. Material deliveries, inspector visits, sub scheduling, plan reviews, and customer walkthroughs all take labor hours that do not directly produce work. A lead carpenter paid for 2,080 hours per year might only swing a hammer for 1,100 to 1,300 of them. The rest is coordination. Your bids need to recover the cost of that coordination time.
Tips for General Contracting Employee Costing
- Use the correct workers comp classification for each employee. A finish carpenter at 4% costs $2,330 less per year in workers comp than a framer at 8% on the same $28/hr wage. Wrong classification costs you money or puts you at legal risk.
- Sub crews skip your payroll burden. But misclassification of employees as subs can trigger $10,000 to $50,000 in penalties per worker from the IRS and state agencies. Know the legal difference.
- Coordination time is real labor cost. If your lead carpenter spends 2 hours per day on calls, inspections, and sub management, that is 520 hours per year of paid but non-productive time. Your billing rate needs to cover it.
- Benefits vary widely in general contracting. Track the total cost per employee, not a company average. A lead with health insurance, a truck, and tools costs 40% more in burden than a laborer with no benefits.
Frequently Asked Questions
How much does a general contractor employee really cost per hour?
A contractor employee making $28 per hour costs $52 to $64 per hour in total employer cost. General contracting workers comp runs 5% to 9% depending on the classification (framing is highest, finish work is lowest). Add FICA, unemployment, benefits, and vehicle costs, and the burden multiplier is 1.9x to 2.3x base wages.
What is the labor burden rate for general contractors?
General contracting labor burden runs 28% to 40% for mandatory costs because workers comp classifications vary widely. Framing and demolition are rated 7% to 9%. Finish carpentry is 3% to 5%. Total burden with benefits and vehicle costs reaches 85% to 130% of base wages. Know your classification code because it determines your biggest variable cost.
What is workers comp for general contractors?
Workers comp for general contracting varies more than any other trade. Finish carpentry runs 3% to 5%. Framing runs 7% to 9%. Demolition can hit 10% or more. A $28/hr worker with 7% workers comp costs $1.96/hr for that item. That is $4,077 per worker per year. Make sure each employee is classified under the correct code.
How do you calculate fully burdened labor for construction bids?
Take the hourly rate, add mandatory burden (FICA 7.65%, FUTA 0.6%, SUTA 2% to 4%, workers comp 5% to 9%), then add per-employee costs (health insurance, PTO, vehicle, tools) divided by annual hours. A $28/hr worker with 35% mandatory burden and $1,500/month in benefits and vehicle costs has a burdened rate of $46.50 to $55/hr. Use this number in bids, not the wage rate.
What percentage of construction labor hours are productive?
General contracting sees 55% to 65% of paid hours as productive. Material deliveries, inspections, sub coordination, plan reviews, and travel eat the rest. A project manager or lead carpenter who spends half the day coordinating subs and handling inspections is only producing direct work 50% to 55% of the time. That doubles their effective hourly cost.
Knowing Your Numbers Is Step One
This calculator shows you one piece. The Growth Report shows you the full picture: where you're leaking revenue, what to fix first, and how contractors like you are growing past the ceiling.