When I am setting up labor in HeavyBid there is one place I don’t mind having a little “fluff” and that is Labor Tax. I always recommend keeping the cost as cost (not hidden markup) but there are so many hidden costs in labor that is difficult to quantify. The bare minimum tax percentage for labor would be around 10% of workers comp and general liability is covered elsewhere. However, that is probably not enough. Just the employer’s portion of Social Security and Medicare is 7.65%. Experienced companies will keep the percentage anywhere between 15% and 30% depending on where they cover soft labor costs. I recommend also breaking out the tax. If you ask the accounting department what to use and they just give you a flat percentage with no detail you could be double covering some of the cost. Get them involved so they understand what the goal is and where HeavyBid covers the periphery costs like workers comp if that is not going to be included in the tax.