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Labor Rate Worksheet Template
HOURLY LABOR RATE WORKSHEET INSTRUCTIONS
October 2010
The following is intended to provide guidance and assistance in working with the Hourly Labor
Rate Worksheet, Form 703.33. Contractor should enter data into all fields highlighted in yellow;
once data is entered those fields highlighted in blue will automatically populate. These are the
labor rates that should be used on all change order requests when labor hours are broken out.
The rate sheet must be signed.
Fringe Benefit Statement: In order to confirm an hourly labor rate worksheet, a signed Fringe
Benefit Statement is required. If the fringe benefits are paid directly to the employee, that
Base Labor Rate – This rate can be done a couple of ways:
1) It can be the base hourly rate, or
2) Occasionally, contractors will include vacation pay in this rate because it is a taxable benefit.
The contractor only has to enter the regular time base rate, the form calculates Overtime (1.5)
and Double time (2) automatically.
Fringe Benefits The total of the Fringe Benefit column should match the total of the Fringe
Benefits statement. Many times the benefits may be distributed differently among the various
types, but Vacation and Pension almost always match. Usually, with a Union contractor, the
vacation benefits are taxable, so the sheets are set up to add the vacation pay into the base
rate to calculate the taxes in the burden area. The only difference in this is when the vacation
is actually a deduction from their base rate. There will be nothing filled in the fringe benefit
section. On the statement it will note that this is a deduction. 'Other' fringe benefits may
include subsistence payments to the employee, or union required expenses, i.e. safety
equipment.
If the fringe benefits are paid directly to the employee, the entire hourly labor rate is taxable. In
the worksheet, the burden is calculated based on the total hourly labor rate.
Burden - Burden includes taxes and insurance.
Taxes: Those cells in the column labeled “ % Rate that have a percentage filled in are
mandated rates by the government. We just need to monitor changes. Contractors’ payroll
Workers Compensation Insurance: will vary widely from Contractor to Contractor. It can be as
low as 5% and as high as 30 or 40%. It's an individual assessment made by insurance
companies based upon several things, including the Contractor’s claim history. Contractor shall
Liability Insurance: A contractor pays liability premiums based on sales, and they are usually
billed a rate per thousand dollars of sales. Contractor shall insert its liability rate in the adjacent
'% Rate' column.
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source: calstate.edu
Labor Rate Worksheet Template