Employer Cost Calculator
Calculate the true cost of hiring an employee. See the full breakdown of employer taxes, benefits, and overhead beyond base salary.
All inputs adjust the result in real time. No data leaves your browser.
The true cost to employ someone is always higher than their base salary. Employers must match the employee's Social Security (6.2% up to the wage base of $184,500) and Medicare (1.45%) contributions. This employer-side FICA alone adds 7.65% to your costs.
Federal Unemployment Tax (FUTA) applies to the first $7,000 of each employee's wages. The base rate is 6.0%, but most employers receive a credit of up to 5.4%, bringing the effective rate down. State unemployment insurance (SUTA) rates vary by state and employer history.
Benefits like health insurance, 401(k) matching, and workers compensation add significantly to the total cost. A typical employer spends 20-40% above the base salary on taxes and benefits combined.
If you are a freelancer or consultant, this calculator helps you understand what to charge. Your rate needs to cover not just the equivalent salary, but also the employer-side taxes and benefits you would otherwise receive as a W-2 employee.