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What is the difference between the Billing rate and the Burden rate in Employee Timecard reporting?

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The different rates that Contractor Foreman has are always in hours and the definitions are found below:

Wage Rate: The wage rate refers to the base amount paid to a worker or employee for their time, usually calculated per hour, day, or project. It represents the cost of labor without accounting for any additional overheads or benefits.

Burden Rate: The burden rate refers to the additional costs associated with an employee’s wages, such as taxes, insurance, benefits, and other overhead expenses. It is often expressed as a percentage added to the wage rate to reflect the true cost of employing that person.

Billing Rate: The billing rate is the amount charged to the customer for labor services. It includes not only the wage rate and burden rate but also any additional markup or overhead charges, and can vary based on the type of service, project, or client agreement.

In Contractor Foreman, the Burden Rate is the summary of the Wage rate + the Burden rate. This is the Actual cost of an employee per hour.

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