Employee Payroll Cost Calculator
Find the full yearly cost of an employee, including employer taxes and benefits, and the cost per hour.
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Total Cost per Year
- Wages
- Social Security + Medicare
- FUTA + SUTA
- Benefits and other
- Cost above wages
- Cost per paid hour
- Per Month
Positions
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| Position | Wages | Total Cost | Burden | Remove |
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What an Employee Really Costs
Wages are only part of the cost. Employers also pay their share of payroll taxes, unemployment taxes, workers' compensation insurance and benefits.
Social Security: 6.2% of wages up to $184,500 (2026) Medicare: 1.45% of all wages
Federal unemployment (FUTA): 0.6% of the first $7,000 per employee (6.0% less the 5.4% state credit)
State unemployment (SUTA): your rate × wages up to your state's wage base
The additional 0.9% Medicare tax on high earners is withheld from the employee only, so it isn't an employer cost.
Worked Example
Tips
Employers in states that owe FUTA credit reductions pay more than 0.6%. New employers usually get a standard SUTA rate for the first years. Paid time off doesn't add cash cost, but it lowers the hours actually worked, which raises the cost per productive hour.