Key takeaways
- Build the bill rate from the bottom: pay rate, payroll burden (employer FICA 7.65%, FUTA, state unemployment, workers' comp, liability), overhead per billed hour, then profit.
- Say markup or margin, never just a percentage. A 50% markup on a $20 worker bills $30: a 33% margin before burden, 24% after.
- Compute overhead per billed hour from your own books. In our worked example it is $12, which moves the break-even markup from 14% to 74%.
- Short shifts cost more per hour to run. A 4-hour minimum per worker, billed, is the most important line in your terms.
- Price overtime, cancellations, holidays and travel in the agreement before the first event, not on the invoice after it.
On this page14 sections
The four parts of a bill rate
The pay rate is what the worker earns per hour. The bill rate is what the client pays per hour. Everything between the two has to cover the cost of employing the worker, the cost of running your agency, and your profit. Agencies that price by copying a competitor's rate, or by applying a multiplier they heard at a trade show, find out at year-end which of the three they forgot.
| Layer | What it covers | Example per hour |
|---|---|---|
| Pay rate | The worker's hourly wage | $20.00 |
| Payroll burden | Employer FICA, FUTA, state unemployment, workers' comp, general liability | $2.79 |
| Burdened cost | Pay plus burden: what one hour of a worker costs you | $22.79 |
| Overhead | Coordinators, recruiting, software, insurance not in burden, office, owner's pay | $12.00 |
| Loaded cost | Burdened cost plus overhead: your break-even bill rate | $34.79 |
| Profit | What is left | $15.21 |
| Bill rate | What the client pays | $50.00 |
Worked example. Burden uses the default inputs of our bill rate calculator (Texas or Florida new-employer state unemployment, example workers' comp and liability rates). Overhead of $12 per billed hour is an example built in the overhead section below.
Start with the pay rate, not the bill rate
The pay rate is a staffing decision before it is a pricing one. Set it at what it takes to fill the shift with someone who will actually come, then build the price on top. A rate that wins the quote but cannot fill Saturday morning is not a price, it is a future no-show. Our no-shows guide covers what that costs.
Pay rate checks before you quote
- The minimum wage where the work happens, not where your office is. City rates can sit well above the state's: Seattle's is $21.30 an hour for 2026, above a $20 pay rate.
- Local market for the role: the BLS Occupational Employment and Wage Statistics publish wages by occupation and metro area, a useful outside check on your own data.
- Shift difficulty: early calls, late finishes, outdoor heat, heavy lifting, long standing, a long commute.
- Certifications the role requires (alcohol server permit, food handler card) and who pays for them.
- Skill that changes the client's result: product training, lead capture, a second language, a bartender who can run a bar alone.
- Your own fill rate at the current pay: if the role is hard to fill or no-shows run high, the pay rate is the first lever.
Many state and city minimum wages change on January 1, and some change mid-year. Put a reminder in December to check every jurisdiction you work in and re-price contracts that run past the change.
Payroll burden, line by line
Burden is what it costs to employ the worker on top of the wage. Some lines are fixed by federal law, some by your state notice, some by your insurance policies. The table shows a $20 hour in two states, with the rates current in November 2026.
| Line | Rate | Texas or Florida, new employer | California, new employer |
|---|---|---|---|
| Social Security (employer) | 6.2% of wages | $1.24 | $1.24 |
| Medicare (employer) | 1.45% of wages | $0.29 | $0.29 |
| FUTA | 0.6% net on the first $7,000; 1.8% in California for 2025 wages after the credit reduction | $0.12 | $0.36 |
| State unemployment | New-employer base rate on the state wage base: 2.7% (Texas, Florida), 3.4% (California); some states assign higher rates by industry | $0.54 | $0.68 |
| Workers' comp | Example: $2 per $100 of payroll; yours depends on class code and history | $0.40 | $0.40 |
| General liability | Example: 1% of payroll | $0.20 | $0.20 |
| Total burden | $2.79 (13.95%) | $3.17 (15.85%) | |
| Paid sick leave accrual | California: 1 hour per 30 hours worked | No state mandate | Up to $0.67 if all used |
Federal rates from the IRS; state unemployment rates from the Department of Labor's July 2026 summary of state laws; California FUTA credit reduction for 2025 from the Department of Labor notice. California also charges a 0.1% employment training tax on the first $7,000 (2 cents an hour at $20), left out of the table. Check the rate your state assigns to staffing agencies. Workers' comp and liability are example inputs, not benchmarks. Not tax advice: use your own notices and policies.
Why the burden drops during the year
FUTA and state unemployment apply only up to a wage base per worker per year: $7,000 for FUTA, $9,000 in Texas, $7,000 in California and Florida, $14,250 in Illinois, $17,600 in New York. A part-time ambassador who earns $4,000 with you in a year costs you the full rate on every dollar. A full-season bartender passes the base by spring and costs less per hour after that. Price with the full rate: the savings on your busiest workers are your cushion, not your margin.
Lines agencies forget
- Paid sick leave. In states that require it, every hour worked accrues leave you will pay for later. In California, at 1 hour per 30 worked, that is up to 3.3% of wages.
- FUTA credit reductions. In states that owe the federal unemployment fund, the FUTA credit shrinks. California employers paid 1.8% instead of 0.6% on 2025 wages. The Department of Labor determines the credit reductions after November 10 of each year and publishes the list of affected states in a notice.
- Experience rating. Your new-employer unemployment rate changes after a few years based on claims against your account. High turnover and seasonal layoffs can push it up.
- Paid training and briefing time. Required training is generally hours worked under federal rules (29 CFR 785.27). A one-hour product training per ambassador is payroll, so it needs a line on the quote.
- Reporting-time pay for workers sent home early in California, New York, Massachusetts and other states, and paid standby. Both are covered in the no-shows guide.
- Payroll processing fees per worker per run, background checks, uniforms you provide.
Overhead per billed hour, and why short shifts cost more
Overhead is everything that keeps the agency running and does not change with one more worker on one more shift: coordinators, recruiting and onboarding, software, phones, insurance not already in the burden, accounting, office, and the owner's own pay. The cleanest way to price it is per billed hour.
The yearly average hides a second effect: much of the coordination work happens per shift, not per hour. Booking, confirming, briefing, validating hours and invoicing take about the same time for a 4-hour shift as for an 8-hour one.
| Shift length | Coordination per shift | Coordination per hour | Share of a $50 bill rate |
|---|---|---|---|
| 3 hours | $15 | $5.00 | 10% |
| 4 hours | $15 | $3.75 | 7.5% |
| 6 hours | $15 | $2.50 | 5% |
| 8 hours | $15 | $1.88 | 3.8% |
Worked example: 30 minutes of coordinator time per shift at a loaded coordinator cost of $30 an hour. Time your own coordinators for a week to get your number.
That is the economic case for a minimum shift length: below 4 hours, coordination alone eats a growing slice of the rate, before travel, no-show risk and a worker's willingness to cross town for a short shift.
Markup vs margin: the same price, three different percentages
"We work at 50" means nothing until you say what 50 is. Clients, competitors and staffing articles mix markup on pay, margin on the bill rate, and margin after burden. The table shows how far apart they are on the same $20 worker.
| Markup | Bill rate | Overtime bill rate | Margin on pay only | Gross margin after burden | Gross profit per hour |
|---|---|---|---|---|---|
| 25% | $25.00 | $37.50 | 20.0% | 8.8% | $2.21 |
| 50% | $30.00 | $45.00 | 33.3% | 24.0% | $7.21 |
| 75% | $35.00 | $52.50 | 42.9% | 34.9% | $12.21 |
| 100% | $40.00 | $60.00 | 50.0% | 43.0% | $17.21 |
| 150% | $50.00 | $75.00 | 60.0% | 54.4% | $27.21 |
Computed with the formulas of our bill rate calculator and its default burden. Gross profit is before overhead.
Two thresholds matter. Burden alone sets the floor: at 13.95% markup you earn nothing before overhead. Add the $12 of overhead from the example and the break-even markup is 74% ($34.79 on a $20 worker). Any client conversation about price starts from that number, not from the bill rate.
Why event staffing multipliers run higher than temp staffing
Large staffing companies publish their margins. In fiscal 2025, TrueBlue reported gross profit of 22.8% of revenue, and Robert Half reported 39.0% on its contract talent business. Those firms place workers on assignments that run for weeks or months, so recruiting and coordination are spread over hundreds of hours per placement. Event work is shifts of 4 to 10 hours, booked, confirmed, briefed and invoiced one at a time, with weekend peaks, cancellations and standby. The cost per billed hour is higher, so the gross margin has to be too. Use the large firms as a reminder of how thin margins get at scale, not as a target.
Public rate sheets show how wide local markets are. The Tampa Convention Center posts a 2026 client rate sheet from its security and guest-services contractor: its venue ambassadors bill at $30 an hour standard and $36 on holidays, with a 4-hour minimum charge and sales tax on top. Venue ambassadors are not product-trained brand ambassadors who capture leads and report results, and the rate follows the work, not the job title.
Price by role, not by average
One multiplier across every role is simple and usually wrong. Roles differ in pay, burden (workers' comp follows the class code), how hard they are to fill and how much coordination they need. Run each role through the bill rate calculator with its own pay rate and its own class rate.
| Role | Pushes pay up | Pushes burden or overhead up | Price separately |
|---|---|---|---|
| Brand ambassador, sampling | Product knowledge, sales or lead targets | Store-by-store coordination, recaps with photos | Training hours, product pickup, mileage |
| Bartender | State server permit, volume experience | Workers' comp class, alcohol liability | Permit costs if you pay them, bar setup and breakdown time |
| Banquet server, captain | Fine-dining experience, leading a team | Long days that cross daily overtime lines | Captain premium, overtime past 8 hours in California |
| Trade show booth staff | Lead capture, demos, a second language | Multi-day travel, badge logistics | Travel days, hotel, per diem, pre-show training |
| Team lead | Responsibility for a crew and the recap | Paid time before and after the crew | Lead hours as their own line |
| General event staff | Early or late calls, outdoor heat | High turnover, more recruiting | Holiday and short-notice rates |
Hourly, flat or per-program: quoting the way clients buy
Some clients want one number per event, or one price per in-store demo across a season. You can give it to them without giving up hourly pricing underneath: build the flat price from hours, and write the hours into the quote.
| Format | Example | Write into the quote |
|---|---|---|
| Hourly | 3 brand ambassadors x 8 hours x $50 = $1,200 | Rate per role, minimum hours, overtime rate |
| Flat per event | $1,200 for 3 ambassadors from 11 AM to 7 PM | Headcount, start and end time, rate per extra hour per worker |
| Per demo, in a program | 4-hour demo at $50 an hour = $200 per demo, plus mileage | Demo length, setup time included or not, recap, cancellation window per demo |
Worked examples at the guide's $50 bill rate.
The flat price is only safe if the assumptions travel with it. "$1,200 for the event" becomes a loss the day the client keeps the crew an extra 90 minutes. "$1,200 for 3 ambassadors from 11 AM to 7 PM, extra time at $50 per worker per hour" does not. For in-store programs, price the demo from its real length including setup and breakdown, and bill the recap and product pickup if they take paid time. Our in-store sampling program guide covers demo length and recaps.
Minimums, cancellations, overtime and extras
Half of pricing is the hourly rate. The other half is the terms that decide which hours get billed. Put every line below in the agreement and on the quote, so the invoice never surprises anyone.
Minimum billed hours per worker
A 4-hour minimum per worker per shift is a common term; the Tampa convention center rate sheet uses one. It covers the coordination cost of short shifts and the fact that some states owe workers sent home early a minimum amount of pay: in California, half the scheduled shift, at least 2 and at most 4 hours. Set your minimum at least at the strictest reporting-time rule where you work.
Cancellations
Pick a notice window that matches how long it takes you to rebook the workers elsewhere, and a fee that covers what you lose inside it. A common structure: no charge with 72 hours of notice or more, the minimum billed hours per scheduled worker inside 72 hours, and same-day headcount cuts billed as worked shifts. Write separately what happens when weather or the venue cancels.
Overtime
- Weekly overtime. The FLSA requires time and a half for hours over 40 in a workweek. It counts every hour the worker works for you that week, whichever client they were at. An ambassador with 36 hours on Monday to Friday crosses 40 four hours into a Saturday shift for a different client.
- Daily overtime. California pays time and a half after 8 hours in a workday and double time after 12. A 10-hour event day in California is 8 regular hours and 2 overtime hours.
- Billing it. Quote an overtime bill rate of 1.5 times the regular rate ($75 on a $50 rate) and say who pays the premium when overtime comes from the agency's own scheduling across clients. The common answer: the client pays overtime caused by its own hours (long days, extensions), the agency absorbs overtime it created by booking the same worker for several clients.
Holidays, rush and extras
- Holidays. Holiday premiums are contractual, not federal law. Name the dates and the rate: the Tampa sheet lists a holiday rate of $36 against $30 standard for its venue ambassadors.
- Short notice. Requests inside 48 or 72 hours cost more to fill. A rush rate or a fixed fee per worker is fair if it is in the agreement before the request.
- Travel. Bill mileage at the IRS standard mileage rate or your own, and say whether travel time is billed. Travel from one job site to another during the workday is generally hours worked under federal rules (29 CFR 785.38), so it is payroll too.
- Training and briefings. Bill paid product training as hours, at the regular rate or a training rate.
- Parking, uniforms, equipment. Pass-through at cost, with receipts, or a fixed amount per worker.
- Sales tax. Whether staffing services are taxable depends on the state and sometimes on what the workers do. Washington, for one, has taxed temporary staffing services as retail sales since October 1, 2025. Check each state you invoice in.
A costed quote: weekend sampling with 3 brand ambassadors
A beverage brand asks for 3 brand ambassadors at a grocery store, Saturday and Sunday, 11 AM to 7 PM, with a one-hour product training on Friday. Rates from the worked example: $20 pay, $50 bill, burden 13.95%, overhead $12 per billed hour.
| Line | Hours | Rate | Amount |
|---|---|---|---|
| Saturday, 3 brand ambassadors x 8 hours | 24 | $50 | $1,200 |
| Sunday, 3 brand ambassadors x 8 hours | 24 | $50 | $1,200 |
| Product training, 3 x 1 hour | 3 | $50 | $150 |
| Total before tax | 51 | $2,550 |
Worked example. Sales tax added where the state taxes the service.
| Line | Calculation | Amount |
|---|---|---|
| Pay | 51 hours x $20 | $1,020.00 |
| Burden | $1,020 x 13.95% | $142.29 |
| Overhead | 51 hours x $12 | $612.00 |
| Total cost | $1,774.29 | |
| Profit | $2,550 - $1,774.29 | $775.71 (30.4%) |
Three things that change the numbers
- Overtime from your own scheduling. The agency's workweek runs Sunday to Saturday. One ambassador already has 35 hours this workweek with another client; Friday's training brings her to 36. Saturday's last 4 hours are overtime: 4 x $10 = $40 of extra pay plus burden. Under the agreement above, the agency absorbs it. Better: check hours before booking and send someone else.
- A Sunday cancellation 30 hours ahead. Inside the 72-hour window, the client owes the minimum: 3 workers x 4 hours x $50 = $600. Decide whether part of it goes to the ambassadors who kept their Sunday free; it buys loyalty for the next booking.
- A 10% discount. At $45 an hour, profit on 51 hours falls from $775.71 to $520.71, down 33%. A small cut in price is a large cut in profit.
Need a headcount before you price? The event staffing calculator sizes the crew; the staffing invoice template lays out regular, overtime and cancellation lines.
Discounts and price increases
When a client asks for a lower rate, trade it for something that lowers your cost, instead of giving away profit.
| Client gets | You get | Why it pays |
|---|---|---|
| A lower hourly rate | Longer minimum shifts (6 hours instead of 4) | Coordination spread over more hours |
| A lower hourly rate | A season commitment with dates booked in advance | Recruiting and planning done once, steady hours |
| A lower hourly rate | Net 15 instead of net 30, or payment on receipt | Less cash tied up in payroll |
| A lower hourly rate | Weekday or off-peak dates | Workers easier to find, fewer no-shows |
| A volume discount | A volume threshold met per quarter, applied as a credit after | You discount only once the volume is real |
Raise prices on a schedule, not under pressure. Put a yearly rate review in every agreement, effective each January when minimum wages and unemployment rates change, and explain increases with the cost line that moved.
Payment terms and the payroll float
You pay workers weekly or every two weeks. Clients pay in 30 days, often later. The gap is cash you have to finance, and it grows with every new client.
Terms that protect cash
- Invoice within 24 hours of validated hours, not at month-end
- Net 15 for new clients, net 30 only with history
- A deposit for first events and large one-off bookings
- A late fee stated in the agreement
- Card or bank payment links on every invoice
- A credit limit per client: no new bookings past it until paid
Common pricing mistakes
- Quoting a percentage without saying markup or margin.
- Forgetting burden lines: paid sick leave, FUTA credit reductions, workers' comp by class code.
- Pricing overhead as a flat 10% of pay without checking it against your books.
- No minimum shift length, or a minimum below the reporting-time rule of the state.
- One multiplier for every role, when workers' comp, fill difficulty and coordination differ.
- Overtime not in the agreement, so the premium comes out of your margin by default.
- Cancellation terms nobody enforces. A fee waived every time is not a term.
- Discounting the rate instead of trading it for longer shifts, earlier booking or faster payment.
- Ignoring sales tax in states that tax staffing services.
- Net 60 for a client you cannot afford to finance.
Sources
- Topic no. 751, Social Security and Medicare withholding rates, IRS
- Topic no. 759, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, IRS
- FUTA credit reductions, U.S. Department of Labor, Employment and Training Administration
- Federal Unemployment Tax Act credit reductions for 2025 (notice, public inspection copy), U.S. Department of Labor, via the Federal Register
- Significant Provisions of State Unemployment Insurance Laws, effective July 2026, U.S. Department of Labor, Office of Unemployment Insurance
- About loss cost multipliers (workers' compensation rates per $100 of payroll), Missouri Department of Commerce and Insurance
- Fact Sheet #23: Overtime Pay Requirements of the FLSA, U.S. Department of Labor, Wage and Hour Division
- Overtime, California Department of Industrial Relations, DLSE
- Reporting time pay, California Department of Industrial Relations, DLSE
- California Paid Sick Leave: Frequently Asked Questions, California Department of Industrial Relations, DLSE
- 29 CFR 785.27: Training programs (general), Electronic Code of Federal Regulations
- 29 CFR 785.38: Travel that is all in the day's work, Electronic Code of Federal Regulations
- State Minimum Wage Laws, U.S. Department of Labor, Wage and Hour Division
- Minimum Wage (2026 rate), City of Seattle, Office of Labor Standards
- Occupational Employment and Wage Statistics, U.S. Bureau of Labor Statistics
- Temporary staffing services (services newly subject to retail sales tax), Washington State Department of Revenue
- Standard mileage rates, IRS
- Sentry client rates 2026, Tampa Convention Center (security and ambassador staff), City of Tampa
- TrueBlue, Inc. Form 10-K for fiscal 2025, U.S. Securities and Exchange Commission (EDGAR)
- Robert Half Inc. Form 10-K for fiscal 2025, U.S. Securities and Exchange Commission (EDGAR)
Figures without a source are worked examples or rules of thumb, labeled as such. Laws and rates change: check the current rule with your state before you rely on it. Nothing here is legal advice.