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SCA Labor Cost Calculator

Fully loaded cost per hour and per year for one Service Contract Act position: wage, paid time off, health & welfare and payroll taxes. Free, no sign-up.

Wage and fringe
The WD rate, or what you pay if higher.
$5.92 standard, $5.42 on EO 13706 contracts (from Aug 10, 2026).
Cash in lieu is taxable wages; plan contributions are not.
40 × 52 = 2,080 for a full-time position.
Paid time off
EO 13706 contracts only: up to 56 hours, about 7 days.
Payroll taxes and insurance
6.2% Social Security + 1.45% Medicare.
Effective % of total wages.
Your state rate, as effective % of wages.
Rate per $100 of payroll ÷ 100.
Optional: liability, EPLI. % of wages.

Fully loaded labor cost

per productive hour
per year
Breakdown per productive hour and per year
CostPer hourPer year
Wage
Paid time off
H&W on all paid hours
Payroll taxes and insurance
Total

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What fully loaded labor cost means

The wage on a Service Contract Act wage determination is a floor, not a price. Between that number and the hourly rate you bid sit health and welfare, paid time off, payroll taxes, insurance and your indirect costs. This calculator adds up the direct labor part for one position, the same way SCA Bid Pricing Pro does for every line of a bid.

Paid hours vs productive hours

A full-time employee is paid for 2,080 hours a year (40 × 52). The government only gets the hours they actually work. Subtract holidays, vacation and, on EO 13706 contracts, sick leave, and what remains are productive hours. Every cost per year must be recovered over those hours, not over 2,080. That is why the calculator adds a paid time off uplift: PTO hours ÷ productive hours.

H&W on every paid hour

H&W is owed on all hours paid, including vacation, holidays and sick leave, up to 40 a week and 2,080 a year (29 CFR 4.175(a)(1)). Spread over productive hours, it costs more than the WD rate per hour worked.

Why H&W paid as cash is taxed

H&W paid into a bona fide health plan is generally exempt from Social Security, Medicare and FUTA (IRS Publication 15-B). H&W paid as cash in lieu is wages, so payroll taxes apply to it. Workers' comp and unemployment insurance are required by law, so they never count toward the SCA fringe (29 CFR 4.171(c)).

What this calculator leaves out

FUTA, SUTA and Social Security stop at an annual wage base, so enter them as effective rates on total wages. Overhead, G&A and fee go on top of this direct labor cost; see how to build a burdened labor rate.

Last reviewed: November 2026. General information, not legal or tax advice. Confirm rates against the WD named in your solicitation.