Payroll Cost Calculator

The true cost of an employee is always higher than their salary. Employer payroll taxes, benefits, and overhead can add 20–40% on top. Find out the real number before you hire.

Mandatory Employer Taxes (2024)

Social Security Rate (%) Capped at $168,600 wages. 6.2% standard.

Medicare Rate (%) No cap. 1.45% standard.

FUTA Rate (%) Federal unemployment. 0.6% on first $7,000.

SUTA Rate (%) + Wage Base ($) State unemployment. Varies by state (avg ~2.7%).

SUTA Wage Base ($) Varies by state ($7K–$56K). Default ~$14K.

Optional Benefits (Annual Cost to Employer)

Health Insurance ($) Employer contribution. US avg ~$7,000/year.

Dental & Vision ($) Avg ~$500–$800/year.

Retirement Match ($) E.g. 3% match on $75K = $2,250.

PTO Cost ($) 15 days PTO on $75K = ~$2,885.

Optional Overhead

Equipment & Software ($) Laptop, tools, SaaS licenses.

Training & Development ($)

Recruiting Cost (one-time, $) Agency fee, job boards. Often 15–20% of salary.

Workers' Comp Insurance ($) ~0.5–2% of payroll. Varies by industry.

Total Annual Cost to Employer

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Cost Breakdown

Cost Item	Annual Amount	% of Base

Cost Composition

Quick Reference

What This Means

The True Cost of Employment

For every dollar you pay an employee in salary, you typically spend an additional $0.20–$0.40 on taxes and benefits. The "employee multiplier" — total cost divided by base salary — usually falls between 1.25 and 1.45 for US employers. Larger companies with richer benefits often run 1.5–1.8x. This calculator reflects mandatory federal taxes (FICA + FUTA) plus optional state unemployment (SUTA), benefits, and overhead you configure. Workers' compensation and state-specific taxes vary widely — check your state's requirements for precision. The recruiting one-time cost should be amortized over expected tenure when comparing options.