Employee Cost Calculator
Calculate the true cost of an employee beyond just their salary.
$
$
Employer's portion only
%
Typically 3-6%
$
Dental, vision, life insurance, etc.
$
Computer, desk, software, etc.
%
FICA + Medicare = 7.65% (default)
Enter a base salary to calculate total employer cost
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Understanding Total Employee Cost
An employee's salary is just the starting point. The true cost includes many additional expenses that can add 25-40% or more on top of base salary.
Components of Employee Cost
Mandatory Costs
- FICA (Social Security): 6.2% of salary up to $168,600 (2024)
- Medicare: 1.45% of all wages
- FUTA: Federal unemployment tax (0.6% on first $7,000)
- SUTA: State unemployment tax (varies by state)
- Workers' Compensation: Required in most states
Common Benefits
- Health Insurance: Average employer cost is $7,000-15,000/year per employee
- 401(k) Match: Typically 3-6% of salary
- Dental/Vision: $500-1,500/year
- Life/Disability Insurance: $200-500/year
- PTO: Paid time off has a cost (salary during non-work)
Overhead Costs
- Equipment: Computer, phone, monitors ($1,500-3,000)
- Software: Licenses, tools, subscriptions
- Office Space: Desk, utilities, facilities
- Training: Onboarding and professional development
The Employee Cost Multiplier
A common rule of thumb is that an employee costs 1.25x to 1.4x their base salary. For a $70,000 salary, expect to pay $87,500 to $98,000 in total costs.
Industry Variations
- Tech: 1.3-1.5x (higher equipment/software costs)
- Manufacturing: 1.2-1.4x (workers' comp is higher)
- Professional Services: 1.25-1.35x
- Retail/Food Service: 1.15-1.25x (fewer benefits)