Like most organizations, payroll costs represent a large majority of total spend - as much as 70% in some industries.  This includes gross wages, employer taxes (federal and state) as well as benefits (such as insurance and 401k).  Given the significance of labor costs to an organization, it’s quite surprising that many budget owner's project labor costs using a simple gross pay multiple (1.1x - 1.3x of gross salary/wages).

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To eliminate the ambiguity and inaccuracy in payroll forecasting, we've created a free comprehensive financial model to help our community of operators more accurately forecast these large expenses.