# What is employment burden?

Source: https://launch-rec.com/glossary/employment-burden. Category: Commercials. Market: US and UK.

Also called: employer burden, burden rate, on-costs.

## Definition

Every employer cost on top of the pay rate: payroll taxes, workers' compensation, holiday accrual and benefits. Typically 12% to 16% in the US.

## In practice

In the US, burden usually means FICA, FUTA and SUTA, workers' compensation premium and any benefits — around 12.5% as a planning figure, higher in states with expensive comp rates or for manual trades.

In the UK the equivalent is employer National Insurance, pension auto-enrolment and holiday pay accrual, which together commonly land near 20% of pay for a PAYE temp.

## Common mistake

Modelling burden as a flat national number. Workers' comp rates vary by state and by job code — a warehouse desk quote and a nursing quote are not the same business.

## Related terms

- https://launch-rec.com/glossary/pay-rate
- https://launch-rec.com/glossary/bill-rate
- https://launch-rec.com/glossary/gross-margin