Employee Total Cost Calculator
Calculate the true total cost of an employee including salary, taxes, benefits, and overhead.
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Visualization
How It Works
The true cost of an employee is typically 1.25x to 1.4x their base salary. On top of wages, employers pay 7.65% FICA, 0.6% FUTA, state unemployment tax, workers compensation insurance, health benefits, and retirement contributions. A $65,000 salary employee often costs the employer $82,000-$91,000 annually. This is critical for business planning and understanding why contractor rates appear higher.