Administrative Burden

The Administrative Burden, or simply, burden, is defined as all-costs related to a contractor or consultant’s employment by the service or agency.

These costs include, but are not limited to payroll expenses for the employee, FICA, FUTA, SUTA, and other government mandated taxes, general liability insurance, unemployment insurance, company-paid health insurance, company-paid 401(k) and other deductions, etc., and the costs to the organization of processing and administering these expenditures. An agency must understand its burden-per-employee, if they expect to make reasonable profits per-employee.

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