Employer burden rate?
Employer burden refers to the various costs and responsibilities participants assume when they hire service providers or caregivers. These include expenses like payroll taxes (such as Social Security and Medicare), unemployment insurance, and workers’ compensation insurance.
FMS companies usually charge between 18-25% for employer burden. These charges are deducted from the participant’s overall budget, reducing the amount available for direct services or other essential resources. For example, in a budget with $100,000 allocated for payroll and a 25% employer burden, $25,000 would go toward taxes and insurance. Be sure to ask your FMS about the employer burden to make a well-informed decision.
