This document outlines the hourly costs and billable hours for an employee to calculate an hourly rate. It lists taxes, benefits, and other expenses totaling $68.71 per hour. It also specifies billable hours of 1,379 per year based on a 40 hour work week with vacations and holidays. To reach a yearly profit of 10% with a department overhead of 30%, the calculated hourly rate is $173 with a breakeven rate of $148.

1. Hourly Cost Amount Description
Wages $32.00 HIGHEST PAID EMPLOYEE WAGE (IN DEPARTMENT)
Taxes $1.98 FICA ← Note 1: Tax Laws can and do change from year to
Taxes $0.46 MEDICARE ← year. It is very Important that you work with a
Taxes $0.26 FEDERAL UNEMPLOYMENT ← CPA to be sure you are using current values to
Taxes / State unemployment $0.24 YOUR STATES % RATE X DOLLAR AMOUNT OF D5 ← to determine true costs of labor, overhead and
Taxes / Workmens Comp. $2.25 YOUR STATES % RATE X DOLLAR AMOUNT OF D5 ← much more.
Retirement Contribution $0.25 YEARLY AMOUNT COMPANY CONTRIBUTES / 2080
Health / Medical Insurance $3.34 MONTHLY CONTRIBUTION AMOUNT X 12 / 2080
Monthly Truck Payments $3.17 MONTHLY PAYMENT AMOUNT X 12 / 2080
Fuel $11.75 MONTLY DOLLAR AMOUNT X 12 /2080
Commercial Vehicle Insurance $0.73 MONTLY DOLLAR AMOUNT X 12 /2080
Tools $1.65 TOTAL DOLLAR AMOUNT ON TRUCK / 2080
Parts Inventory on the Truck $8.97 TOTAL DOLLAR AMOUNT ON TRUCK / 2080
Vehicle Registration/Inspection $0.10 YEARLY DOLLAR AMOUNT / 2080
Parking / Tolls $0.05 MONTLY DOLLAR AMOUNT X 12 /2080
Professional Licensing/ Association $1.26 YEARLY DOLLAR AMOUNT / 2080
Misc. IE; union dues, uniforms etc.. $0.25 MONTLY DOLLAR AMOUNT X 12 /2080
Business costs: $68.71
Billable hours Amount Description
Days of vacation 7 How many days vacation do you plan per year
Average hours / week 40 How many hours per week you work a normal week
Average hours / day 8 How many hours per day you work a normal day
Average workdays / week 5 How many days per week you work a normal week
Sick days / year 5 How many days per year you are sick
Public holidays and Training / year 6 How many public and religious holidays per year
Percentage of time that is billable 75% Percentage of hours you can actually bill
Collection rate 95% Percentage of your hours you get paid for
Billable hours: 1,379 Hours
Hourly Rate Amount Description
Hourly Cost Before Billable Hours $69 Hourly Rate if you could bill for every hour worked
Hourly After Billable Hours $104 Hourly Rate after you factor in billabe hours
Department Overhead 30% National Average is between 28 and 32 percent
Yearly Wanted Profit 10% Your targeted yearly profit, typically 10 - 30%
Calculated hourly rate: $173 Calculated hourly rate
BREAKEVEN $148
CAUTION UNPROTECTED FORMULAS EXIST IN THESE CELLS
CAUTION UNPROTECTED FORMULAS EXIST IN THESE CELLS
CAUTION UNPROTECTED FORMULAS EXIST IN THESE CELLS