Business FinancesQuestion 325 of 1632
Beyond an employee's gross wages, a contractor must also budget for the employer's share of payroll taxes. This additional cost is commonly referred to as:
a.Retainage
b.Labor burden
c.Contingency
d.Gross margin
Explanation
Labor burden is the added cost of employing a worker beyond base wages — including the employer's payroll taxes, workers' compensation insurance, and benefits. Estimators must add labor burden to bid jobs accurately.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)