For every business, the cost of an employee eclipses the sum of their wages. But how do you figure out exactly how much a new or existing employee costs?

A payroll cost calculator, often called a workers calculator, employment cost calculator, or labor cost calculator, can help to determine an employee’s gross wages in addition to other employee-related expenses. These include payroll taxes, which cover local, state, and federal taxes, which include Social Security, Medicare, and unemployment. The true cost of an employee also includes the cost of benefits, such as health insurance and paid time off, along with other ancillary expenses such as meals or supplies. Overhead expenses , such as required technology or office space, also figure into the calculation.

Determining the amount of taxes, benefits, overhead expenses associated with hiring an employee helps you set your prices high enough to cover these costs. It can also help you with business planning, so you can determine when it's the right time to hire a new employee.

The true cost of an employee calculator can help you estimate how much an employee will cost your small business, taking into consideration the different payroll taxes in each of the 50 states. Determine how much your new employee would cost, beyond their standard wages. Simply plug in the requested information into the fields below to determine how much an employee will cost your business.