The previous question explained what expenses are included in the employer burden rate.  Many of these expenses are variable and may change based on many factors.

Many expenses associated with employer burden are variable expenses.  When an employer has two different employees, in two different positions, doing two different job duties may have two different employer burdens.

For example, Workman’s Compensation Insurance varies by job classification (duties), the risk associated with the classification, and past claims.  A construction worker has a higher Workman’s Compensation Insurance rate than an office worker.  The same is true for an employee who participates in a 401(k) with a company matching.  This employee would have a higher employee burden rate than the employee who does not participate in the same program.

Other factors that increase the burden rate provided by the FMS may include factors such as regional center requirements (contractual obligations), technology to address Electronic Visit Verification, and expenses to administer employee benefits like health insurance and retirement plans.