Calculate your TRUE labor costs - wages, taxes on tips, benefits, and processing fees.
Total wages you paid employees (not including tips)
Tips staff received (you pay taxes on this, not the tips themselves)
Employer portion (FICA + state taxes, typically 10-15%)
Health insurance, workers comp, etc.
ADP, Gusto, Paychex monthly fees
Total revenue for the same period
Total Labor Cost =
Gross Wages
+ (Wages × Tax Rate)
+ (Tips × Tax Rate) ← You pay this!
+ Benefits & Other
+ Payroll Processing
Tips don't come from your pocket, but the payroll taxes on tips do! This formula shows what labor actually costs you.
OwnerClone automatically tracks labor costs including tips, integrates with your POS time clock, and shows you real-time labor percentages.