Specific craft labor costs are developed from the wages, fringe benefits and burdens. Burdens are payroll taxes and insurance. The payroll taxes can be figured at 10% of the wages and, if any, taxable fringe benefit amounts. The insurance covers items such as unemployment, workers compensation and liability insurance coverage. This varies by craft type and the experience rating of the employer. A general amount that can be used is 20% of the wages. Also, consideration must be given to direct supervision for the foreman and general foreman costs.
Mike Rowe
