Employee Cost Calculator
An employee costs more than their salary. Payroll taxes, insurance, benefits and equipment commonly add 20% to 40%. Enter your figures to see the full cost per year, month and hour.
Enter your figures below. Results update as you type.
True yearly cost$75,790.001.26 times the salary
- Salary 79%
- Payroll taxes and insurance 8%
- Benefits 9%
- Other costs 4%
- Cost on top of salary
- $15,790.00
- Cost per month
- $6,315.83
- Cost per hour (2,080 hours)
- $36.44
How the True Cost of an Employee calculation works
Total cost = salary + payroll taxes + insurance + benefits + other costs
A $60,000 salary with 7.65% payroll tax, 2% for unemployment and workers' compensation, $7,000 of benefits and $3,000 of other costs comes to $75,790 a year: 1.26 times the salary, or $36.44 an hour.
Frequently asked questions
How much does an employee cost beyond salary?
A common estimate is 1.25 to 1.4 times the salary once employer payroll taxes, insurance and benefits are included.
What payroll taxes does an employer pay?
In the US, the employer's share of Social Security (6.2%) and Medicare (1.45%), plus federal and state unemployment taxes. Workers' compensation insurance is a further cost that varies by industry.
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