Employee cost calculator
An employee costs more than their salary. Add the employer payroll taxes on top of gross pay to see the real monthly and yearly number.
Estimated employer cost
- Employer payroll taxes$240
- Monthly employer cost$2,240
- Yearly employer cost$26,880
- Team total$26,880
Estimate. In the US the employer side of FICA is 7.65% (6.2% Social Security up to the annual wage cap, plus 1.45% Medicare). Federal and state unemployment tax and workers compensation sit on top and vary by state, and health insurance and other benefits are separate again. Set the rate to your own numbers.
How it works
Employer cost = gross pay + employer payroll taxes. In the US that starts with the employer half of FICA, 7.65%, and then depends on your state: unemployment tax and workers compensation both vary, and benefits are separate again. Set the rate to your own numbers. This is an estimate, not a payroll filing.
Worked examples: federal payroll taxes only
Employer share of FICA at 7.65% of gross pay. State unemployment tax, workers compensation and benefits come on top and vary by state.
| Gross pay per year | Employer FICA (7.65%) | Cost per year | Cost per month |
|---|---|---|---|
| $30,000 | $2,295 | $32,295 | $2,691 |
| $40,000 | $3,060 | $43,060 | $3,588 |
| $50,000 | $3,825 | $53,825 | $4,485 |
| $60,000 | $4,590 | $64,590 | $5,383 |
| $75,000 | $5,738 | $80,738 | $6,728 |
Hiring in the UK? The rate above is US payroll tax. Use the UK employee cost calculator, with employer National Insurance and the minimum pension built in.
Go further: Staff Scheduling on Excel or Software: The Honest Comparison and Working Time Management in Retail: The Complete 2026 Guide.