Tree service
Tree Crew Payroll Calculator
Works crew payroll, where the burden on this trade is the highest you will meet.
Result
Burden rates vary by state, trade and claims history. Take yours from the accounts rather than the default here, because a ten point error moves every price you quote.
Get a Free Business AuditHow the calculation works
Staff times wage times hours, with overtime at its multiplier, then the labour burden applied on top. The burden figure is what makes this calculation different in tree care: it covers payroll taxes, workers compensation, general liability allocation, paid time and training, and workers compensation on tree work carries one of the highest class rates of any occupation. The true hourly cost of a climber is substantially above the wage.
What moves the number
- Workers compensation class rate, which is the dominant burden element.
- Overtime hours, which in storm season can be substantial.
- Certification and training, which this trade needs and loses to turnover.
- Experience modifier, which multiplies the comp component.
Where this one goes wrong
Overtime in storm season compounds in a way owners underestimate, because the overtime premium also carries the burden, so an hour of overtime costs the multiplier on the wage plus the burden on that larger figure. In a sustained storm response that becomes a very large number quickly, and pricing emergency work without it is how a busy fortnight produces no profit. Training is the other real cost: this trade loses people and a trained climber takes time and money to replace, which argues for pay and conditions that retain rather than minimise.
Before you quote
- Apply burden to overtime premium as well as base wages.
- Price storm work with the real overtime cost, not the base rate.
- Count training and certification as a recurring cost of turnover.
Questions
About this calculator
Why is tree crew labour so expensive beyond the wage?
Workers compensation. Tree work carries one of the highest class rates of any occupation, and it sits on top of payroll taxes, liability allocation, paid time and training. The true hourly cost of a climber is well above the wage, which is why labour-only pricing understates jobs badly.
How does overtime affect the cost?
More than the multiplier suggests, because the burden applies to the overtime premium too. An overtime hour costs the uplifted wage plus burden on that larger figure, which in a sustained storm response adds up fast. Emergency work priced on base rates frequently makes no money.
Is it worth paying more to retain climbers?
Usually, because a trained climber is expensive to replace in both recruitment and the time to bring someone to competence, and this trade loses people. Turnover also costs in safety, since experience is what keeps crews out of trouble. The cheapest crew is rarely the cheapest option.
The formula
cost = (wage x hours + wage x multiplier x overtime) x (1 + burden%)
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How to use this calculator
- People. Enter your own figure; the page starts at 3.
- Hourly wage ($). Enter your own figure; the page starts at $25.
- Normal hours per week. Enter your own figure; the page starts at 40.
- Overtime hours per week. Enter your own figure; the page starts at 4.
- Overtime multiplier. Enter your own figure; the page starts at 1.5.
- Labour burden (%). Payroll tax, insurance, holiday, training.
The result updates as you type, so you can try a figure, see what it does to payroll per week, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| People | 3 |
| Hourly wage | $25 |
| Normal hours per week | 40 |
| Overtime hours per week | 4 |
| Overtime multiplier | 1.5 |
| Labour burden | 28% |
What comes out
| Result | Value |
|---|---|
| Payroll per week main result | $4,416 |
| Payroll per year | $229,632 |
| True cost per hour | $33.45 |
| Overtime per year | $29,952 |
Payroll is $4,416 a week, $229,632 a year. A $25.00 wage really costs $33.45 an hour, and overtime alone accounts for $29,952.
How sensitive the answer is
Holding everything else steady and changing only hourly wage, this is what happens to payroll per week. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Hourly wage ($) | Payroll per week |
|---|---|
| $12.5 | $2,208 |
| $18.75 | $3,312 |
| $25 example above | $4,416 |
| $37.5 | $6,624 |
| $50 | $8,832 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- People
- A number, between 0 and 500, starting at 3.
- Hourly wage ($)
- A money amount, starting at $25.
- Normal hours per week
- A number, between 0 and 80, starting at 40.
- Overtime hours per week
- A number, between 0 and 60, starting at 4.
- Overtime multiplier
- A number, between 1 and 3, starting at 1.5.
- Labour burden (%)
- Payroll tax, insurance, holiday, training.
What the results tell you
| Result | What it is |
|---|---|
| Payroll per week | The headline result. A money figure. |
| Payroll per year | A money figure. |
| True cost per hour | A money figure. |
| Overtime per year | A money figure. |
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.