Partnerships & OpportunitiesCOMPASS PRO / CALCULATION SHEET 01
The hourly wage
isn't the whole cost.
Model the cost of a paid labor hour and an actual productive hour. Start with your own payroll and insurance information rather than a generic California percentage.
Open the calculation sheet01 / YOUR INPUTS
Your numbers.
Your model.
Use verified company figures. Leave optional charges blank only when they do not apply or you intentionally want a partial scenario.
Labor calculations need JavaScript. If this sheet cannot start, use the paid-hour and productive-hour formulas below in your own spreadsheet. These controls cannot submit wage information.
THE METHOD / BEFORE THE NUMBER
Separate time paid
from time produced.
Employee wages are not the same as the business's labor cost. Employer taxes, insurance, benefits and paid-hour support costs can affect the total. So can paid time that isn't productive time on a project.
The model uses a simplified wage-percentage allocation for payroll burden and workers' compensation. Actual California payroll taxes have rules and wage limits; actual workers' compensation premiums depend on the policy and classification. Do not treat the calculator as a tax return, insurance quote, wage-law check or bid.
03 / FORMULA & ASSUMPTIONS
See the working.
Cost per paid hour = base wage × [1 + (employer burden % + workers' comp allocation %) ÷ 100] + benefits per paid hour + other paid-hour costs.
Cost per productive hour = cost per paid hour ÷ (productive share % ÷ 100). A job-cost scenario multiplies that figure by the productive job hours you enter.
This simple model assumes all listed costs scale proportionally. In real payroll, some costs are capped, fixed, periodic, class-dependent or affected by overtime. It cannot establish legal employee classification, prevailing wages, workers' compensation coverage, rate accuracy or project profitability. Review the calculation with your accountant, payroll provider and insurer.
OFFICIAL MATERIAL / VERIFY CURRENT FIGURES
California EDD — payroll contribution and withholding rates ↗WCIRB — workers' compensation filings and advisory rates ↗California DIR — workers' compensation guidance ↗NEXT / RETURN TO THE PROFESSIONAL WORKSHOP