FreshStaff
Staffing Glossary

Bill Rate

The hourly rate a staffing agency charges the client for a placed worker.

The bill rate has to cover three things: the worker's pay rate, the employer's payroll burden (taxes, workers' comp, benefits), and whatever margin is left over for the agency. Set it too low and a "placed" worker is actually costing you money once burden is added in.

Most agencies back into a bill rate by starting from the pay rate and burden, then adding a target markup or margin on top — that's the order the bill rate calculator below runs the math in.

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