How do you calculate payroll burden?

Payroll burden is the extra cost an employer pays beyond gross wages.

Formula:

Payroll Burden = Employer taxes + benefits + insurance + other employee-related costs

Example:

$5,000 salary + $1,200 additional costs = 24% payroll burden

Accurate tracking is key, and teams like Ledger Labs often help businesses calculate this correctly for better budgeting and compliance.