1. What is the Staffing Agency Bill Rate?

The Staffing Agency Bill Rate is the amount charged to clients for temporary staff. It includes the employee's pay rate plus burden (taxes and benefits) and markup (agency profit).

2. How Does the Calculator Work?

The calculator uses the bill rate formula:

Where:

• \( \text{Pay} \) — Employee's hourly pay rate (USD/hour)
• \( \text{Burden \%} \) — Percentage for taxes and benefits (as decimal)
• \( \text{Markup \%} \) — Agency profit percentage (as decimal)

Explanation: The formula accounts for both the direct labor costs (pay) and indirect costs (burden), plus the agency's profit margin (markup).

3. Importance of Bill Rate Calculation

Details: Accurate bill rate calculation ensures staffing agencies cover all costs while remaining competitive. It affects profitability and client relationships.

4. Using the Calculator

Tips: Enter employee pay rate in USD/hour, burden percentage (e.g., 20 for 20%), and markup percentage. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in burden percentage?
A: Burden typically includes payroll taxes (FICA, FUTA, SUTA), workers' comp, health benefits, and other employment-related costs.

Q2: What's a typical markup percentage?
A: Markup varies by industry and position, but typically ranges from 15% to 50% of the loaded rate (pay + burden).

Q3: How does this differ from a pay multiplier?
A: A multiplier combines burden and markup into one factor (e.g., 2.5x pay rate), while this separates the components for more precise calculation.

Q4: Should I include agency overhead in markup?
A: Yes, markup should cover both agency overhead and profit margin. Calculate your total costs to determine appropriate markup.

Q5: How often should bill rates be reviewed?
A: Review quarterly or when labor costs, tax rates, or benefit costs change significantly.