Employer Cost Calculator

How to use

1. Enter the annual salary you plan to offer.
2. Add the yearly cost of benefits such as health coverage and retirement matching.
3. Enter your employer payroll tax percentage, including the FICA match and unemployment taxes.
4. Add other recurring costs such as equipment, software, and insurance.
5. Read the fully loaded total and the cost multiplier for budgeting.

About this tool

A listed salary is only the opening line of what a hire actually costs. Employers match FICA at 7.65 percent, covering Social Security and Medicare, and add federal and state unemployment taxes on the first dollars of each wage. Add health coverage, retirement matching, insurance, equipment, training, and workspace, and total compensation often lands 25 to 35 percent above base pay, which is why many finance teams budget with a 1.25 to 1.4 multiplier. Enter the salary, yearly benefits spend, an employer payroll tax percentage, and any other recurring costs. The calculator returns the fully loaded annual figure and divides it by salary to show your own multiplier. Use it when sizing an offer, planning a headcount request, or comparing a contractor quote against an internal position on equal terms. Planning estimate only; actual payroll taxes, benefit costs, and insurance rates vary by state, industry, and provider.Workers compensation premiums vary sharply by industry, from office rates under one percent of payroll to far higher figures in construction or logging. Recruiting fees, background checks, and onboarding time are one-off costs, so keep them out of the recurring figure. State unemployment tax rates depend on your claims history and the state's published schedule.

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