👥 Employee Cost Calculator
An employee costs more than their salary. Employers pay their share of Social Security and Medicare, unemployment taxes, benefits and equipment.
How the Employee Cost Calculator works
Employer FICA is 6.2% Social Security (on wages up to the 2026 limit of $184,500) plus 1.45% Medicare. Federal unemployment (FUTA) is usually 0.6% of the first $7,000 = $42. State unemployment, benefits, retirement match and other costs come from your inputs.
Step-by-step calculation
- 1Enter salary and benefits.
- 2Add employer FICA and FUTA.
- 3Add state unemployment, match and other costs.
Worked example
A $60,000 salary with $7,000 of benefits, a 3% match, $300 of state unemployment tax and $2,000 of other costs costs about $75,732 a year — about 1.26 times the salary, or $36.41 per paid hour.
Employee Cost Calculator examples
| Yearly salary ($) | Total yearly cost |
|---|---|
| 30,000 | $42,537 / year |
| 45,000 | $59,135 / year |
| 60,000 | $75,732 / year |
| 75,000 | $92,330 / year |
| 90,000 | $108,927 / year |
Other inputs kept at the calculator's default values. Results calculated by this calculator.
Why use an Employee Cost Calculator?
Budget the true cost of hiring.
Important factors that can affect your results
- State payroll taxes.
- Benefit plan costs.
- Overtime and bonuses.
Frequently asked questions
Why is FUTA only $42?
The 6% FUTA rate is usually reduced to 0.6% by state credits, and it applies only to the first $7,000 of wages.
Is this the same in every state?
No. State unemployment rates and wage bases differ, and some states add other payroll taxes.
Related calculators
Last reviewed November 2026 · How we build and check our tools · Report a problem