Janitorial Staff Hourly Labor Cost Calculator
Calculate the true hourly labor cost of employing janitorial staff, including base wages, payroll taxes, workers' compensation, and benefits burden.
Formulas Used
Annual Wages (per employee)
Annual Wages = Hourly Wage × Hours/Week × 52
Payroll Tax Costs (per employee)
FICA Cost = Annual Wages × FICA Rate
FUTA Cost = Annual Wages × FUTA Rate
SUTA Cost = Annual Wages × SUTA Rate
Workers' Comp Cost = Annual Wages × Workers' Comp Rate
Annual Benefits (per employee)
Annual Health Insurance = Monthly Health Insurance × 12
Annual Other Benefits = Monthly Other Benefits × 12
Total Annual Cost (per employee)
Total = Annual Wages + FICA + FUTA + SUTA + Workers' Comp + Health Insurance + Other Benefits
True Hourly Labor Cost
True Hourly Cost = Total Annual Cost ÷ Annual Hours
Labor Burden Rate
Labor Burden Rate (%) = (Total Annual Cost − Annual Wages) ÷ Annual Wages × 100
Total Cost for All Staff
Total Annual (All Staff) = Total Annual Cost per Employee × Number of Staff
Assumptions & References
- The federal minimum wage is $7.25/hr (Fair Labor Standards Act); state minimums may be higher.
- Employer FICA is 7.65%: 6.2% Social Security (up to the annual wage base, ~$168,600 for 2024) + 1.45% Medicare (no cap). This calculator applies the rate to full annual wages as a simplification.
- FUTA (Federal Unemployment Tax Act) standard rate is 6.0%, reduced to 0.6% after the typical 5.4% state credit for employers in good standing (IRS Publication 15).
- SUTA rates vary by state and employer experience rating; the U.S. average new-employer rate is approximately 2.7%.
- Workers' compensation rates for janitorial/custodial work (NCCI class code 9014/0917) typically range from 2% to 5% of payroll depending on state and claims history.
- Health insurance and other benefits are entered as monthly employer-paid costs per employee.
- Overtime premiums are not included; all hours are assumed at the straight-time rate.
- Sources: IRS Publication 15 (Circular E), U.S. Department of Labor, NCCI Workers' Compensation Classification Manual.