The burden cost to an employer of hiring and retaining its workforce is calculated by dividing the total indirect costs of employment by the direct costs of payroll. Burden Cost = Indirect Costs/Direct Costs x 100 Some of the indirect costs can include the following:         Payroll taxes         Social security and health insurance         Paid leave for sickness, statutory holidays and vacations         Pension contributions         Bonuses         Travel expenses         Training The burden cost, which is expressed as a dollar amount, represents the dollar burden per one dollar paid in wages. For example, an employee that is paid a gross salary of $40,000 per year with indirect costs of $10,000 per year will have a burden cost of $0.25. $10,000/$40,000 x 100 = $0.25 A burden cost of $0.25 means the employer spends $0.25 on indirect labor costs for every dollar it pays in gross wages.