Employee cost rate explained

An employee cost rate is the hourly amount it costs your firm to have a team member do the work—separate from what you bill the client for it. Set one rate per team member and TaxDome keeps a record of every change.

Employee cost rate at a glance

An employee cost rate is a single manually entered hourly amount per team member. There’s no salary field and nothing is calculated automatically—you enter the number, TaxDome stores it.

Here is what you can do with employee cost rate:

• Set a rate for any team member— enter one hourly amount from any of four entry points : the team members list, the invite flow, a team member’s profile, or while setting up billing rates.
• Edit a rate at any time—TaxDome keeps a record of the change . Time entries and invoices created earlier keep the rate that was in effect when they were created.
• Leave it unset—shows as empty. An explicit 0 is a configured value and displays as 0, not the same as empty—so a blank is never mistaken for a deliberate zero, and you can tell who still needs a rate entered.

Note

Employee cost rate is available to the firm owner and admins only .

Employee cost rate vs. billing rates

• Billing rate—what you charge the client for a service. Configured under billing rates and visible to anyone with the Manage billing rates access right .
• Employee cost rate—what it costs your firm to have that person do the work. Visible only to the firm owner and admins—never to employees or clients.

How employee cost rate changes are tracked

Every time a cost rate is set or edited, TaxDome keeps the earlier value on record—nothing is overwritten. Changing a rate doesn’t rewrite history: time entries, invoices, and other records created earlier keep the rate that was in effect when they were created.

If someone else changes the same team member’s rate while you have it open, TaxDome warns you and shows the new value before letting you overwrite it.

Each set or edit is also logged on the Activity feed , though the feed never shows the dollar amount itself.

Note

If you deactivate a team member, their cost-rate history is kept but hidden while they’re deactivated. Reactivating them makes their most recent rate current again.

Access and permissions

Employee cost rate is available to the firm owner and admins only. Unlike billing rates, there’s no access right that extends cost-rate visibility to employees—an employee never sees a cost-rate field, column, or notice anywhere in TaxDome, including their own rate. This also holds for a TaxDome support session acting on the firm owner’s or an admin’s behalf—cost rate stays hidden either way.

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