Operations
Burden rate: what it is and why your FMS needs to track it
5 min read
When a worker bills an hour at $20, the cost to the FMS isn't $20. It's $20 plus the employer's share of payroll taxes, workers' compensation insurance, unemployment insurance, paid sick leave accrual, and any benefits the FMS offers. The total cost above the base wage, expressed as a percentage of the wage, is the burden rate.
What goes into a typical California burden rate
- Employer FICA — Social Security (6.2%) and Medicare (1.45%)
- State Unemployment Insurance (SUI) — California rate varies by employer experience rating
- Federal Unemployment Insurance (FUTA)
- Workers' compensation insurance — rate varies by job classification (direct support professionals fall under a specific class code)
- Paid Sick Leave accrual — California mandates a minimum accrual; many FMS providers offer more
- Optional benefits — health stipends, retirement matching, etc. (if offered)
Add it all up and California FMS burden rates typically fall somewhere between 18% and 28% of the base wage, with the variance driven mostly by workers' comp class code and any benefits offered.
Why Regional Centers care
Regional Centers fund the program through the FMS. When the RC reviews an authorization or a budget, they're looking at the total cost-per-hour the FMS passes through, not just the wage. If your burden rate calculation is off — or if you can't produce it on demand — that's an audit finding waiting to happen.
How to track it without the spreadsheet headache
FMSLio tracks per-worker hourly rates plus the burden components configured for your FMS. When you generate a budget utilization report or respond to an RC request, the calculation is already done. No recomputing in Excel, no late-night reconciliation before audit prep.
Want to see how FMSLio handles this?
30-minute demo. We'll show your specific California SDP scenarios.