Illustrative model: Payroll taxes, insurance, workers’ compensation, travel time, and supply costs vary by employer and jurisdiction. Verify current rates with your payroll provider, insurer, accountant, and applicable government sources before using these examples for pricing.
1. Penny-for-Penny Cost Ledger
Here is the exact cost accounting breakdown for a $20.00/hour W-2 cleaning technician in the United States:
| Expense Category | Percentage of Wage | Hourly Dollar Amount | Annual Cost (2,080 hrs) |
|---|---|---|---|
| Base Hourly Wage | 100.0% | $20.00 | $41,600.00 |
| Social Security (FICA 6.2%) | 6.20% | $1.24 | $2,579.20 |
| Medicare (FICA 1.45%) | 1.45% | $0.29 | $603.20 |
| Federal Unemployment (FUTA) | 0.60% | $0.12 | $249.60 |
| State Unemployment (SUTA ~2.8%) | 2.80% | $0.56 | $1,164.80 |
| Workers' Comp (Code 9014 @ 6.5%) | 6.50% | $1.30 | $2,704.00 |
| Paid Drive Time Allocation (12%) | 12.00% | $2.40 | $4,992.00 |
| Consumable Supplies & Equipment | 5.00% | $1.00 | $2,080.00 |
| General Liability Allocation | 2.45% | $0.49 | $1,019.20 |
| TOTAL BURDENED HOURLY COST | 137.0% | $27.40 / hr | $56,992.00 |
2. How to Set Your Billable Client Rate
Once you know your fully burdened cost per hour ($27.40), calculating your minimum billable hourly rate is simple:
Billable Rate Formula
Billable Rate = Burdened Hourly Cost ÷ (1 - Target Gross Margin)
$27.40 ÷ (1 - 0.45) = $27.40 ÷ 0.55 = $49.82 per technician-hour (round to $50.00/hr).
If two technicians are sent to a home for 2 hours (4 technician hours), the minimum invoice is 4 × $50.00 = $200.00.
Calibrate Your Labor Burden Automatically
CleanerDesk has a built-in Labor Burden Calculator. Input your local tax and workers' compensation rates once, and all quotes automatically incorporate your exact employer burden.