Labor Cost - Claims Billing Rate

Modified on Thu, Nov 3, 2022 at 11:48 AM

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

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