Cleaning Proposalby Outscoped

Labor burden for cleaning companies

Labor burden is the cost you pay on top of wages. For a cleaning company it is the employer share of Social Security (6.2%) and Medicare (1.45%), federal unemployment (0.6% on the first $7,000), state unemployment, and workers' comp, plus any liability insurance, paid time off or benefits. Add it to the wage before you price a job.

Federal rates for 2026

TaxEmployer rateWage limitSource
Social Security6.2%First $184,500 a yearSSA
Medicare1.45%No limitIRS
Federal unemployment (FUTA)0.6%First $7,000 a year per employeeIRS

FUTA is 6.0% less a 5.4% credit for paying state unemployment on time. In a credit reduction state it is higher.

Worked example

A cleaner paid $18.50 an hour for 2,080 hours earns $38,480 a year. Social Security is 6.2%, Medicare 1.45%, and FUTA works out to 0.11% of that year's wages because it only applies to the first $7,000. That is about 7.76% before state unemployment and workers' comp.

State unemployment, new employer rates

New employers usually start at a set rate until they have a claims history. Your state sends your actual rate each year, so use that once you have it. "Effective" is the share of a $38,480 a year wage, since the rate only applies up to the wage limit.

StateNew employer rateWage limitEffective on $38,480Status
Alabama2.7%$8,0000.56%estimate source
Alaska1.0%$54,2001.00%estimate source
Arizona2.0%$8,0000.42%estimate source
Arkansas2.0%$7,0000.36%estimate source
California3.5%$7,0000.64%confirmed source
Colorado3.05%$30,6002.43%estimate source
Connecticut1.9%$27,0001.33%estimate source
Delaware1.0%$14,5000.38%estimate source
District of Columbian/a$9,000Enter yoursestimate source
Florida2.7%$7,0000.49%estimate source
Georgia2.64%$9,5000.65%estimate source
Hawaii2.4%$64,5002.40%estimate source
Idaho1.0%$58,3001.00%estimate source
Illinois3.35%$14,2501.24%estimate source
Indiana2.5%$9,5000.62%estimate source
Iowa1.0%$20,4000.53%estimate source
Kansas1.75%$15,1000.69%estimate source
Kentucky2.7%$12,0000.84%estimate source
Louisianan/a$7,000Enter yoursestimate source
Maine2.54%$12,0000.79%estimate source
Maryland2.6%$8,5000.57%estimate source
Massachusetts2.42%$15,0000.94%estimate source
Michigan2.7%$9,0000.63%estimate source
Minnesotan/a$44,000Enter yoursestimate source
Mississippi1.0%$14,0000.36%estimate source
Missouri2.376%$9,0000.56%estimate source
Montanan/a$47,300Enter yoursestimate source
Nebraska1.25%$9,0000.29%estimate source
Nevada2.95%$43,7002.95%estimate source
New Hampshire1.7%$14,0000.62%estimate source
New Jersey2.8%$44,8002.80%estimate source
New Mexicon/a$30,600Enter yoursestimate source
New York4.1%$17,6001.88%confirmed source
North Carolina1.0%$34,2000.89%confirmed source
North Dakota1.0%$46,6001.00%estimate source
Ohio2.85%$9,0000.67%estimate source
Oklahoma1.5%$25,0000.97%estimate source
Oregon2.4%$56,7002.40%estimate source
Pennsylvania3.822%$10,0000.99%estimate source
Rhode Island1.21%$30,8000.97%estimate source
South Carolina1.06%$14,0000.39%estimate source
South Dakota1.2%$15,0000.47%estimate source
Tennessee2.7%$9,0000.63%estimate source
Texas2.7%$9,0000.63%confirmed source
Utah1.2%$50,7001.20%estimate source
Vermont1.0%$15,4000.40%estimate source
Virginia2.5%$8,0000.52%estimate source
Washingtonn/a$78,200Enter yoursestimate source
West Virginia2.7%$9,5000.67%estimate source
Wisconsin3.05%$14,0001.11%estimate source
Wyoming1.69%$33,8001.48%estimate source

Estimates come from a 2026 payroll provider table where the state's own notice could not be confirmed. Check your state rate notice. Built 2026-10-18.

Workers' comp

Workers' comp for janitorial work depends on your state, class code (often 9014) and claims history. Enter the rate per $100 of payroll from your policy or quote. It is often the largest piece of burden for cleaning companies, so get the real number from your policy.

Reference rates for estimating only, not tax or insurance advice. Your own rate notices and policy are what you actually pay.

Common questions

What is labor burden in cleaning?
Labor burden is what you pay on top of each wage dollar: the employer share of Social Security and Medicare, federal and state unemployment tax, workers' comp insurance, and any other insurance or benefits you provide.
What is a typical labor burden percentage for janitorial work?
It varies by state, workers' comp rate and benefits. Payroll taxes alone are often around 9% to 12% of wages for a full-time cleaner. Workers' comp, liability insurance and paid time off come on top. Outscoped uses 25% as an all-in default you can change.
How do I find my workers' comp rate?
Look at your workers' comp policy or quote. Janitorial work is often rated under class code 9014, and the rate is shown per $100 of payroll. Divide it by 100 to get a percentage of wages.