Labor Cost - Claims Billing Rate

This document explains at a high level the components used to calculate the CoreLogic trade rates (T-rate)

and billing rates (B-rate) contained in the CoreLogic Claims Connect database.

The T-rate consists of the researched and verified employee’s pre-tax base hourly rate plus fringe benefits 

and insurance for any specific trade (roofer, plumber, electrician, etc.).

T-rate = Base Rate + Fringe Benefits + Insurance Rate

• Fringe Benefits may include:

• Vacation
• health insurance
• 401k contributions
• use of corporate vehicles
• any other benefit an employer may offer their employees

• Insurance Rate is the employer’s contribution to fixed payroll taxes:

• Workers Compensation

                ▪ Varies by state, and trade type

• Federal and State Unemployment Insurance

                ▪ While federal rates are relatively consistent State rates can vary widely by trade 

                    and company, and therefore the startup rate is used

• Social Security
• Medicare
• State Disability Insurance

The billing rate (B-rate) consists of the T-rate multiplied by the sum of the fixed business overhead rate, job 

overhead rate and profit rate.

        B-rate = T-rate * (1 + ( Fixed Business Overhead Rate + Job Overhead Rate + Profit Rate))

• Fixed Business Overhead may consist of:

• Executive Salaries

• Office expenses

• Staff Salaries
• Office equipment and services
• Rent
• Liability and Or Builders Risk insurance
• Marketing and Advertising

• Job Overhead consists of costs that can be directly associated to the job:

• Sales Commissions

• Equipment Rental, and depreciated equipment

• Permits and Fees

• Warranties

• Profit is applied to the “T” Rate